Author: Annabel Makhwaya

  • University of Nairobi Named Kenya’s Top Institution in Latest QS World University Rankings

    University of Nairobi Named Kenya’s Top Institution in Latest QS World University Rankings

    The University of Nairobi has emerged as the highest ranked university in Kenya in the newly released QS World University Rankings for Sub-Saharan Africa, reinforcing its status as the country’s flagship public institution amid intensifying regional competition.

    In the inaugural Sub-Saharan Africa edition published by UK based education analytics firm Quacquarelli Symonds, the University of Nairobi posted an overall score of 62.9, placing 17th continentally out of nearly 70 universities drawn from 21 countries. It is the only Kenyan institution to break into the continental top 20.

    The rankings assess universities across eight performance indicators tailored to the African higher education context. These include academic reputation, employer reputation, research output measured through citations per paper and papers per faculty, international research networks, sustainability performance, faculty student ratio and web impact.

    UoN delivered its strongest performance in web impact, scoring 91.4 and ranking sixth across Africa, an indicator that measures digital visibility and online academic engagement. The university also recorded a strong sustainability score of 79.1, reflecting institutional alignment with environmental and social governance benchmarks including the UN Sustainable Development Goals.

    Crucially, the institution placed 15th in employer reputation across Africa with a score of 54.6, making it the only Kenyan university to feature in the continental top 20 for graduate employability and employer perception. This metric evaluates how employers rate graduates from an institution and is increasingly used as a proxy for workforce readiness and industry relevance.

    Other Kenyan universities featured in the ranking but trailed behind. Kenyatta University ranked 25th overall with strong academic and employer reputation scores. Moi University placed 32nd, while Jomo Kenyatta University of Agriculture and Technology came in at position 33. Egerton University ranked 41st, and Machakos University was listed in the 51 plus band.

    Notably, Machakos University recorded Kenya’s strongest performance in citations per paper with a score of 86.4, ranking seventh in Africa on research impact per publication. The metric captures how frequently academic work from an institution is cited by other researchers and is often viewed as a measure of research influence rather than volume.

    The broader continental picture shows continued dominance by South African institutions. University of Cape Town took the top spot overall, with South Africa claiming 14 of the top 20 positions. Nigeria placed multiple institutions in the ranking, while Ghana and Ethiopia also registered strong representation. In East Africa, Makerere University ranked 16th, placing ahead of UoN by one position.

    The release of the Sub-Saharan Africa table comes at a time when global rankings have increasingly influenced funding decisions, student mobility patterns and institutional branding strategies. Kenyan universities have faced sustained fiscal pressure, faculty strikes and declining research funding over the past decade, raising questions about competitiveness in global knowledge production.

    UoN’s performance therefore carries symbolic weight. The institution has previously featured in the global QS rankings but often outside the top 1000 bracket. Its latest regional performance suggests relative resilience within the African context, even as structural challenges persist domestically.

    Higher education analysts caution that rankings reflect methodological weightings as much as institutional quality. Indicators such as reputation surveys can favor historically established universities with broader international networks, while research citation metrics may privilege disciplines with higher publication density.

    Even so, the University of Nairobi’s position at the top of Kenya’s university hierarchy in the QS Sub-Saharan Africa ranking is likely to strengthen its appeal to prospective students, international collaborators and development partners seeking credible academic anchors in the region.

  • Bill Gates Pledges Sh26 Billion to Kenya’s Health Sector as Trump Cuts Foreign Aid

    Bill Gates Pledges Sh26 Billion to Kenya’s Health Sector as Trump Cuts Foreign Aid

    American billionaire Bill Gates has committed Sh26 billion in direct budget support to Kenya’s health sector, offering a lifeline as the Trump administration slashes foreign aid programmes across Africa.

    The Gates Foundation grant, alongside Sh4 billion from the Susan Thompson Buffett Foundation, brings total philanthropic support to Sh30 billion for the current fiscal year ending in June, according to data from the University of Nairobi’s Centre for Epidemiological Modelling.

    The funding comes at a critical time for Kenya’s healthcare system, which has seen total external support plummet from Sh126 billion last year to just Sh54 billion in the 2025/26 financial year. Off-budget support alone dropped from Sh87 billion to Sh26 billion, following President Donald Trump’s decision to cut major US-funded health contracts.

    Gates Foundation has announced plans to invest tens of billions of dollars in women’s health globally, focusing on conditions that have historically been neglected. The investment will target five key areas including obstetric care and maternal immunisation, maternal health and nutrition, gynaecological and menstrual health, contraceptive innovation, and sexually transmitted infections.

    Warren Buffett’s foundation, named after his first wife and managed by his children, is providing direct financing to the Kenyan government for the first time. The organisation supports reproductive health initiatives, including access to contraception and safe abortion services.

    The aid cuts have created a critical shortage of essential medicines worth Sh34.7 billion, with HIV treatments facing the largest gap at Sh14.47 billion, followed by tuberculosis drugs at Sh13.81 billion. Vaccines, nutrition supplements, and malaria treatments also face significant shortfalls.

    The Global Fund, which fights HIV/AIDS, tuberculosis and malaria, has contributed Sh14 billion in direct budget support, making it one of the top three external funders alongside the Gates and Buffett foundations.

    The shift in funding sources has also changed Kenya’s debt structure for health financing. The share of grants in on-budget external funding has risen to 67.9 percent in 2025/26, up from 46.2 percent the previous year, as the proportion of loans dropped to just 32.1 percent.

    Gates, ranked as the world’s 14th richest person, and Buffett, the 11th richest, have long collaborated on global health philanthropy. Melinda French Gates, Bill’s ex-wife, has separately invested in women’s health since leaving the Gates Foundation last year.

    The American government’s retreat from global health funding has created what observers describe as an urgent gap, challenging wealthy philanthropists and international charities to fill the void left by cuts to US aid programmes that have supported health initiatives across the continent for decades.​​​​​​​​​​​​​​​​

  • Former Jumia Kenya Executive Exposes Racial Discrimination in The Online Firm

    Former Jumia Kenya Executive Exposes Racial Discrimination in The Online Firm

    Former Jumia Kenya Executive Alleges Racial Discrimination in Language Preference Row

    Chief operations officer claims French-speaking bias led to constructive dismissal from e-commerce giant

    NAIROBI — A former senior executive at Jumia Kenya has filed a lawsuit alleging he was forced out of his position partly because he does not speak French, in a case that has raised questions about diversity and inclusion practices at one of Africa’s largest e-commerce platforms.

    James Njine Kamau, who served as chief operations officer at Ecart Services Kenya Limited, Jumia’s parent company, claims the firm’s chief executive told him in August 2025 that he preferred French-speaking managers because they were “easier to deal with” than their English-speaking counterparts.

    The allegation, detailed in court documents filed at the Chief Magistrate’s court in Milimani, Nairobi, on Tuesday, marks a rare public challenge to corporate practices at a company that has positioned itself as a champion of digital commerce across the continent.

    Mr Njine, who spent seven years rising through the ranks at Jumia before his departure in late 2025, is seeking at least 14.1 million Kenyan shillings in compensation and damages. His lawsuit paints a picture of systematic marginalisation that he says began shortly after a new chief executive joined the company in May 2024.

    “This conduct was discriminatory, arbitrary, targeted me on the basis of linguistic and cultural identity, and was clearly designed to marginalise me, undermine my professional standing, and impede my career progression,” Mr Njine stated in his witness statement.

    The case comes at a sensitive time for Jumia, which has been restructuring operations across Africa as it seeks to achieve profitability after years of losses. The company, which went public on the New York Stock Exchange in 2019, has faced mounting pressure from investors to demonstrate sustainable growth in challenging markets.

    Ecart Services has denied any wrongdoing. In an emailed response, Ibrahim Mbogo, speaking for the company, said Jumia observes “the highest standards of corporate governance and labour laws in Kenya” and is “committed to a diverse, inclusive, and merit-based workplace.”

    “Jumia cannot provide specific comments on the allegations or the merits of the case at this time, as we respect the judicial process and will present our defence formally in court,” Mr Mbogo added.

    According to the lawsuit, Mr Njine’s troubles began after the arrival of new management. He claims he was subjected to what he describes as a “fundamentally flawed” performance improvement plan designed to create a pretext for his removal rather than to support his development.

    The former executive alleges he was deliberately excluded from high-level meetings and strategic decision-making forums that were integral to his role as chief commercial officer, a position he had been promoted to in December 2024.

    “Such actions were not isolated, but systematic, coordinated, and deliberate, intended to erode my authority, diminish my professional standing, and create a humiliating, hostile, and untenable working environment,” Mr Njine stated.

    The situation came to a head when the company presented him with a separation agreement offering a 3.2 million shilling package, which he rejected. The agreement would have terminated his contract on December 31, 2025.

    Mr Njine’s legal team characterises his subsequent resignation as constructive dismissal, arguing that the working environment had become intolerable. In a demand letter sent on December 4, 2025, his lawyers wrote that the company’s actions had “stripped our client of the dignity, authority, and responsibilities inherent in his role.”

    The compensation Mr Njine is seeking includes 8.7 million shillings for unfair termination, 2.2 million shillings representing three months’ salary in lieu of notice, and 735,743 shillings for accrued but untaken leave. He also wants the court to order immediate vesting of 4,000 shares granted to him under Jumia’s virtual restricted stock unit programme in December 2024, which were scheduled to vest in December 2026.

    Beyond financial compensation, Mr Njine is asking the court to declare that Ecart’s conduct violated both the Employment Act and the Constitution of Kenya. He wants a ruling that he was subjected to unfair labour practices through “deliberate marginalisation” and the imposition of what he calls a sham performance improvement plan.

    The case highlights broader questions about corporate culture and diversity in multinational companies operating across Africa, where linguistic and cultural differences can complicate management structures. Jumia, founded in Nigeria by French entrepreneurs, operates across 11 African countries with varying colonial histories and official languages.

    Employment law experts say the case could set important precedents for how discrimination based on language is treated under Kenyan law, particularly in multinational corporations where linguistic preferences may intersect with broader issues of cultural bias.

    The lawsuit arrives as Jumia continues to navigate a difficult business environment. In November, the company announced it was leveraging artificial intelligence to reduce its workforce by seven percent as part of ongoing efficiency measures. Earlier this year, it announced plans to cut logistics costs through the introduction of electric vehicles.

    Mr Njine’s career at Jumia spanned multiple roles. He joined as a commercial planner in 2018, before being promoted to head of commercial operations and head of performance and planning in 2022. In December 2023, he took on the additional role of head of general merchandise before his final promotion to chief commercial officer.

    The court has yet to set a hearing date for the case. Both parties are expected to present their arguments in the coming months, with the outcome likely to have implications for employment practices across Kenya’s growing technology sector.

  • Google Rejects 62 pc of Content Removal Requests From Kenyan Government

    Google Rejects 62 pc of Content Removal Requests From Kenyan Government

    Google has rejected nearly two-thirds of content removal requests from the Kenyan government, marking an escalating confrontation between big tech and African authorities over online speech as Nairobi dramatically expands its digital censorship apparatus.

    The search and video platform turned down 62 per cent of demands from Kenya’s Communications Authority to delete YouTube videos, blog posts and search results in the six months to June 2025, according to Google’s latest Transparency Report. The rejection rate, which has more than doubled from 25 per cent a year earlier, represents one of the highest refusal rates globally and signals mounting friction over what constitutes legitimate content moderation versus state-sponsored suppression of dissent.

    Kenya submitted 42 items for removal during the period, nearly quadrupling from 11 requests in the preceding half-year. The 281 per cent surge coincides with a violent government crackdown on youth-led protests that left dozens dead and triggered nationwide internet disruptions, raising alarm among digital rights advocates about the weaponisation of cyber laws against political opposition.

    Google’s defiance stands in stark contrast to its compliance rates elsewhere in Africa. Nigeria saw only 30 per cent of its requests rejected, while South Africa faced a 33 per cent rejection rate. The divergence underscores Kenya’s increasingly aggressive posture despite its reputation as East Africa’s most connected economy and a regional technology hub with internet penetration exceeding 56 per cent.

    The Kenyan government, channelling requests primarily through the Communications Authority, cited defamation, privacy violations and national security concerns as grounds for removal. But Google’s internal review determined that many demands targeted politically sensitive content and government criticism, according to the company’s transparency disclosures.

    “Oftentimes, government requests target political content and government criticism,” Google stated in its report. “Governments cite defamation, privacy, and even copyright laws in their attempts to remove political speech from our services.”

    The company approved removal of only five items after determining they violated its platform policies. A further 11 requests were dismissed because authorities failed to provide sufficient detail to identify the targeted content, exposing gaps in Kenya’s technical capacity to enforce digital regulations.

    The standoff reflects Kenya’s broader authoritarian drift under President William Ruto, whose administration has deployed an arsenal of tools to silence online opposition. In October 2025, Ruto signed into law sweeping amendments to the Computer Misuse and Cybercrimes Act, granting authorities power to block websites and social media content deemed illegal without court approval. The legislation, signed controversially on the day opposition leader Raila Odinga died, was immediately challenged in court and suspended pending constitutional review.

    Human Rights Watch condemned the law as criminalising legitimate speech through vague provisions that punish “grossly offensive” communication with up to 10 years imprisonment or fines reaching 20m Kenyan shillings. Critics warn the elastic language creates a chilling effect on digital discourse, deterring citizens from criticising government policy on platforms where dissent has historically flourished.

    Kenya’s escalating censorship demands also trail a pattern of internet shutdowns that have devastated economic activity. In June 2024, authorities orchestrated an eight-hour internet blackout during anti-tax protests that paralysed mobile money transactions, e-commerce platforms and emergency services. Although officials blamed undersea cable failures, internet monitoring groups including NetBlocks and the Internet Society documented deliberate state-imposed restrictions coinciding with demonstrators breaching parliament.

    A year later, in June 2025, the Communications Authority ordered broadcasters to halt live coverage of anniversary protests, taking major television networks NTV, KTN and K24 off air until the High Court intervened. The brazen media blackout violated a November 2024 court ruling that declared the regulator lacked constitutional authority over broadcast content, demonstrating the government’s willingness to flout judicial oversight.

    “When citizens and digital workers fear surveillance or punishment for online expression, creativity, civic engagement, and economic participation decline,” warned Vivian Ochola of the Institute of Economic Affairs. “This chilling effect not only weakens democracy by silencing dissent and reducing government accountability, but also discourages both domestic and foreign investment.”

    Kenya now leads Africa in content removal requests to Google, having overtaken South Africa in 2023, though it trails far behind global leaders. India submitted 53,924 items during the same period with a 75.7 per cent approval rate, while Russia, South Korea and other authoritarian regimes dominate worldwide censorship attempts.

    The tension between Kenya and Google mirrors a global reckoning over platform governance. Worldwide government requests to Google dropped 11 per cent to 679,315 in the first half of 2025, down from a record 765,263 the previous period, as tech companies resist demands they view as political interference masquerading as content moderation.

    For American technology giants, the collision presents acute ethical dilemmas. Companies celebrated as engines of free speech and political empowerment must navigate jurisdictions where local laws criminalise expression that would enjoy constitutional protection in the United States. The balancing act between accessing lucrative emerging markets and avoiding complicity in authoritarian censorship grows more precarious as African governments adopt China’s playbook of digital control.

    Kenya’s trajectory alarms observers who view the country as a bellwether for democratic governance in sub-Saharan Africa. Unlike neighbours Uganda and Tanzania, which send minimal takedown requests but impose more systematic internet restrictions, Kenya’s approach combines aggressive content removal demands with episodic shutdowns, creating unpredictable hazards for businesses and civil society.

    The Ruto administration has intensified surveillance of social media, with telecommunications provider Safaricom accused of sharing subscriber data with law enforcement to facilitate abductions of protest organisers. While Safaricom denied the allegations, multiple activists linked to anti-government movements remain missing, and the Data Protection Commissioner has failed to investigate complaints.

    Digital rights advocates argue that Kenya’s censorship infrastructure, despite lower compliance from platforms like Google, achieves its objective through intimidation. The mere threat of criminal prosecution under expansive cyber laws deters ordinary Kenyans from online political participation, while internet disruptions at critical moments sever coordination networks essential for collective action.

    As Kenya heads towards its next electoral cycle, the collision between digital freedoms and state control will intensify. Google’s resistance offers limited protection when authorities can simply shut down connectivity entirely, leaving citizens cut off from both information and the global economy that Nairobi claims to champion.

    The question confronting tech platforms is whether principled refusal to comply with dubious censorship demands can withstand governments willing to sacrifice economic growth and international reputation to maintain political control. For now, Kenya’s digital activists fight a rearguard action, deploying virtual private networks and encrypted messaging to evade surveillance while the space for dissent contracts.

  • Nowhere To Hide: KRA Reinstates ‘Nil Returns’ After System Upgrade To Nab Tax Cheats

    Nowhere To Hide: KRA Reinstates ‘Nil Returns’ After System Upgrade To Nab Tax Cheats

    Tax evaders who have been living large while declaring zero income now face an electronic dragnet as the Kenya Revenue Authority brings back nil return filing with teeth-baring validation checks designed to catch every Prado-driving, Dubai-jetting fraudster who claims to earn nothing.

    The taxman announced Friday that nil returns are back, but with a deadly twist. Starting April 1, 2026, when Kenyans file their 2025 income tax returns, a sophisticated artificial intelligence system will cross-check every declaration against a web of third-party data sources that knows what you drive, where you shop, how much M-Pesa flows through your phone, and whether you’ve been importing luxury goods while crying poverty to the taxman.

    The move ends weeks of anxiety after KRA shocked taxpayers in January by temporarily suspending nil filing altogether, sending small businesses and genuine unemployed youth into panic about penalties and compliance certificates. But the taxman wasn’t backing down. It was sharpening its knives.

    “The Nil Filing Return option has been reinstated after the necessary system validations were embedded for the 2025 returns to be filed after March 31, 2026,” KRA’s Business Strategy, Technology and Enterprise Modernisation Department announced, signaling the end of the free lunch for Kenya’s shadow economy.

    For 2024 returns and earlier periods, taxpayers can still file as before. But come the June 30 deadline for 2025 income year returns, every nil declaration will pass through what KRA officials privately call “the gauntlet,” a system designed to separate genuine zero-earners from the tenderpreneurs and consultants who’ve been gaming the system for years.

    The crackdown comes after KRA caught a staggering 392,162 taxpayers red-handed. These individuals had taxes withheld from their earnings in 2024, proof positive they earned money, yet brazenly declared nil income when filing their returns. The discovery exposed a massive loophole that has cost the country billions in lost revenue.

    Commissioner for Micro and Small Taxpayers George Obell laid bare the scale of the fraud in a January interview that sent shockwaves through tax circles. “When we check the system, we can see that these taxpayers still had transactions in 2024, yet they filed nil returns,” he said, his frustration evident.

    The most common scam involves a fundamental misunderstanding, or willful ignorance, about withholding tax. Many professionals earning fees for consultancy, management services, or contract work believe the 5.0 percent or 3.0 percent tax deducted at source is final. It is not.

    “That is not correct. It is an advance tax,” Obell emphasized, destroying the favorite excuse of thousands who thought they’d found a permanent escape hatch.

    Now, KRA is turning that misconception into a weapon. Starting this filing season, the taxman will prepopulate income tax returns with every shilling it knows you earned, pulling data from withholding tax certificates, electronic invoices, bank transactions, mobile money flows, customs records, and even vehicle registration data from the National Transport and Safety Authority.

    “This time, when we say we are prepopulating returns, that income will already have been captured by the time the taxpayer is seeing the return, and one will not be able to avoid it. Because we already have visibility of the 5.0 percent, we know what the total income is,” Obell warned.

    The message is chilling: you cannot hide what KRA already knows.

    The electronic Tax Invoice Management System, or eTIMS, sits at the heart of this revolution. Every transaction at supermarkets, service providers, import clearances, even the corner shop, is now logged and linked to your PIN. If your spending exceeds your declared income, the system flags you automatically for audit.

    Integration with Customs and Immigration means KRA can see if you cleared a Range Rover or flew business class to London. Mobile money platforms like M-Pesa provide real-time data showing the velocity of cash through your accounts. If money is moving, KRA knows about it.

    Critics warned the suspension of nil filing in January unfairly targeted genuine unemployed youth and struggling small businesses. A recent graduate in Githurai with truly zero income feared being trapped between compliance requirements and a system that assumed everyone was cheating.

    KRA insists it has balanced concerns. No penalties will apply during the transition, and simplified digital tools launching in February will let genuine nil-filers comply with a single click. But the authority makes no apologies for hunting down the wealthy who masquerade as paupers.

    “We will also communicate to taxpayers who choose, despite having been shown income on their prepopulated returns, not to come forward and engage the authority. That in itself will be an invitation to look not just at 2025 but also preceding years,” Obell warned, making clear that defiance invites deeper scrutiny stretching back years.

    The stakes are enormous. Out of Kenya’s 8 million registered taxpayers, only 4 million actually pay tax. The burden falls disproportionately on salaried workers who have PAYE deducted automatically, while the shadow economy thrives. Micro and small businesses contribute just 14 percent of domestic tax collections, despite dominating the economy.

    KRA Deputy Commissioner Patience Njau made the authority’s intent crystal clear in January. “This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers,” she declared, signaling that 2026 marks a turning point.

    The Income and Expenditure Verification programme, which launched January 1, pulls data from multiple sources simultaneously. It compares declared income against eTIMS invoices, withholding tax certificates, import documentation, and bank records in real time. Any mismatch triggers immediate review.

    Tax experts warn that this represents a fundamental shift in Kenya’s compliance landscape. Where taxpayers once filed summary returns that KRA might audit later, the system now validates continuously and automatically at the point of filing. There is no grace period for “post-filing explanations.”

    For those tempted to test the system, the consequences are severe. Upward tax adjustments, penalties accumulating at 1 percent monthly interest, and possible denial of the Tax Compliance Certificate that unlocks everything from government tenders to bank loans await the defiant.

    Legal observers have questioned whether KRA’s temporary suspension of nil filing in January exceeded its statutory authority. Tax lawyer Ogun Owino argued the move violated principles of legality, noting that the Tax Procedures Act gives no discretion to suspend due dates administratively.

    “It is irrational to take an administrative decision that undermines a written law without public participation. That amounts to a fiat and flies in the face of principles of legality and common sense,” he wrote, accusing KRA of creating uncertainty when traders need compliance certificates to unlock payments, secure tenders, or meet statutory requirements.

    KRA has ignored such criticism, betting that the judiciary will back efforts to expand the tax base when the alternative is fiscal collapse. The government, constrained by massive debt and a shrinking borrowing window after the 2024 protests, desperately needs every tax shilling it can collect.

    The authority has urged taxpayers to verify their PINs on iTax and ensure accuracy as the system increasingly relies on consolidated data streams. Failure to update information could mean your legitimate expenses get disallowed or innocent transactions get flagged.

    For Kenya’s tenderpreneurs, consultants, and freelancers who have thrived in the grey zone between formal employment and complete informality, the message from Times Tower is unambiguous. Big Brother is watching, he knows what you earn, and come June 30, there will be nowhere to hide.

    The filing deadline remains June 30, 2026, for all individual taxpayers. Late filing attracts a Ksh2,000 penalty, or 5 percent of tax due, whichever is higher. Late payment accrues interest at 1 percent monthly.

    KRA’s citizen assembly initiatives and plans to recruit 10,000 tax agents across the country suggest the authority is playing a long game. Build compliance culture early, make the system simpler for genuine users, and hunt down the cheats with technological precision.

    Whether this strategy will finally level the playing field between salaried workers and the shadow economy remains to be seen. What is certain is that 2026 marks the year tax compliance in Kenya went digital, automated, and unforgiving.

    For hundreds of thousands of Kenyans who thought nil returns were a permanent shield against taxation, that shield just developed gaping holes. The taxman cometh, and this time, he’s armed with algorithms.

  • Inside NSSF’s Sh30 Billion 35-Floors Twin Towers in Nairobi

    Inside NSSF’s Sh30 Billion 35-Floors Twin Towers in Nairobi

    The National Social Security Fund has unveiled an ambitious Sh30 billion plan to construct twin towers in Nairobi’s central business district, marking its return to mega real estate projects after years of diversifying into other asset classes.

    The mixed-use development, comprising towers of 35 and 60 floors, will feature luxury apartments, office blocks, a business hotel, conference and retail facilities, and an observation deck offering panoramic views of the capital city. The 60-storey tower is set to become the tallest building in Nairobi upon completion.

    According to NSSF Managing Trustee and Chief Executive Officer David Koross, the project will be fully funded by the pension fund over the next four years. The development will rise on the Fund’s 3.85-acre prime land at the junction of Kenyatta Avenue and Uhuru Highway, a parcel valued at Sh4 billion that has remained idle for decades.

    “We are also considering the idea of regenerating life in the city centre, and that’s why in that design we are doing apartments, to bring people to live in the CBD. In other places in the world, people are living within city centres,” Koross told a local business publication on Thursday.

    The Sh30 billion outlay represents a third of the Sh100 billion that NSSF expects to collect from members this year, riding on significantly higher contributions that came into effect in February. Workers now pay up to Sh6,480 per month, up from Sh200 in 2022, following implementation of the NSSF Act 2013.

    Breaking New Ground in CBD Living

    The project marks a significant departure from conventional real estate development in Nairobi’s CBD, which has traditionally been dominated by office blocks, retail outlets and government facilities. By incorporating residential apartments into the design, NSSF is adopting a global trend of city centre living that has gained traction in major cities worldwide.

    Artistic model of the proposed NSSF Twin Towers.
    Artistic model of the proposed NSSF Twin Towers.

    In metropolises such as Addis Ababa, Luanda, Tokyo, Manila and Shanghai, a sizeable portion of the population lives and works within city centres under mixed-use zoning systems. Urban planners globally have been shifting towards hybrid developments that combine residential, co-working and entertainment facilities, catering to young professionals under what is known as a “15-minute-city concept” that reduces commute times and carbon footprints.

    Nairobi’s other commercial hubs such as Westlands and Upper Hill already boast modern apartment complexes, which have helped attract corporates that prioritize convenience for staff when selecting office locations. However, the CBD itself has lacked such residential offerings, partly due to limited availability of sizeable land holdings.

    A Troubled History Finally Resolved

    The NSSF plot has a colourful and contentious history spanning several decades. In the late 2000s, Indian billionaire businessman Mukesh Ambani had planned to purchase the land for Sh1.3 billion to build a 21-storey hotel. He later pulled out after discovering the land was smaller than indicated on the title deed, eventually constructing Delta House in Westlands instead.

    Over the years, the prime parcel attracted numerous investment proposals and became the subject of ownership intrigues during the Jomo Kenyatta and Daniel Arap Moi administrations. Several parties, including Kenya Tourist Development Corporation, hospitality chain Holiday Inn, and Japanese firms Chori and the Ataka Group, were fronted as potential developers.

    The much-coveted plot, one of the largest undeveloped parcels in the CBD, has been used as a makeshift car park in recent years. NSSF’s decision to finally develop the land will draw a line under decades of speculation and behind-the-scenes manoeuvring.

    Strategic Return to Real Estate

    The twin towers project represents a strategic return to large-scale property investments that once dominated NSSF’s asset portfolio. In recent years, the Fund has diversified significantly into other asset classes, opening headroom to make fresh property bets without breaching Retirement Benefits Authority regulations that cap real estate exposure at 30 percent of total assets.

    As of June 2025, NSSF held immovable property worth Sh35.45 billion, accounting for just 6.35 percent of its total investment assets of Sh558.05 billion. Five years earlier, the Fund’s property holdings worth Sh43.3 billion represented 18 percent of total investment assets.

    Currently, bonds and listed stocks account for the largest shares of NSSF investment assets at 69.83 percent or Sh389.67 billion and 15.26 percent or Sh85.13 billion respectively, with property a distant third. Other significant asset classes include fixed cash deposits at Sh13.35 billion and private equity investments at Sh7.29 billion.

    In terms of annual asset value growth, property has lagged behind bonds and equities. Between June 2024 and June 2025, the value of NSSF’s property holdings rose marginally from Sh35.39 billion to Sh35.45 billion, reflecting the impact of idle holdings such as the Kenyatta Avenue land. By contrast, bonds appreciated to Sh389.68 billion from Sh260.98 billion, while equities grew to Sh85.14 billion from Sh61.19 billion.

    Regenerating the CBD

    The NSSF project comes at a time when Nairobi’s CBD has suffered an exodus of major businesses to other commercial nodes in recent years. The development aims to contribute to ongoing efforts to regenerate and revitalize the city centre.

    Environmental Impact Assessment reports submitted for approval indicate that the project will generate significant economic benefits, including direct and indirect job opportunities during both construction and operational phases. NSSF argues that the development will help ease Nairobi’s housing shortage while expanding commercial space in the city centre.

    “The proposed development will provide employment opportunities to a significant number of people, thereby reducing unemployment and improving livelihoods,” the Fund states in its EIA report.

    Beyond job creation, the project is expected to make optimal use of land that has remained undeveloped for years despite its prime location. The towers will provide parking for more than 1,100 vehicles, easing pressure on limited CBD parking facilities.

    A Growing War Chest

    NSSF’s ability to fund the entire Sh30 billion project underscores its growing financial muscle. The Fund’s collections have surged following the full implementation of the NSSF Act 2013, which mandated higher contributions from both employers and employees.

    The new contribution rates, which took effect in February after four annual reviews, have workers paying up to Sh6,480 per month compared to Sh200 in 2022. This dramatic increase has positioned NSSF to collect approximately Sh100 billion this year, providing a substantial war chest for investments.

    The growth of serviced apartments and short-stay platforms such as Airbnb has also supported city centre residential property development globally, targeting tourists, conference attendees and transit passengers. This trend is expected to bolster demand for NSSF’s planned residential units.

    Artistic model of the proposed NSSF Twin Towers.
    Artistic model of the proposed NSSF Twin Towers.

    Environmental and Social Impact

    According to the EIA report, NSSF has outlined comprehensive environmental and social safeguards for the project. During construction, traffic disruption in the CBD will be minimized through proper scheduling of material deliveries, deployment of formal flagmen and installation of clear signage.

    Noise pollution will be managed with sound barriers, portable shields for equipment, proper maintenance schedules and protective gear for workers. The development will incorporate occupational safety and health measures including mandatory protective gear, restricted site access, proper handling of hazardous materials and regular staff training.

    Water management strategies will include motion-sensing taps, urinals and toilets, as well as rainwater harvesting systems for cleaning, toilet flushing and irrigation. The sewerage system will be built to approved standards, with substandard or hazardous materials to be avoided during construction and maintenance.

    The use of locally available construction materials such as cement, concrete, ceramic tiles, timber, sand, ballast and electrical cables is expected to stimulate local industries and create additional employment opportunities along the supply chain.

    With the project expected to take four years to complete, construction is likely to commence soon pending approval of the EIA and other regulatory requirements. The development will reshape Nairobi’s skyline and could serve as a catalyst for similar mixed-use projects in the CBD.

    The initiative also aligns with broader county government efforts to modernize and revitalize the capital city. Governor Johnson Sakaja’s administration has been implementing various CBD improvement projects, including installation of cabro blocks, new lighting along major streets and upgrades to walkways.

    Nairobi County is also reviewing its zoning policy, which has not been updated for nearly two decades. The proposed policy could allow buildings in the CBD and other key commercial areas to rise as high as 75 floors, potentially transforming the city’s skyline further.

    For NSSF, the twin towers project represents not just a return to its real estate roots, but a bold bet on the future of urban living in Kenya’s capital. By bringing residential life back to the CBD, the Fund is positioning itself at the forefront of a global trend while potentially unlocking significant value from a long-dormant asset.

  • Blow to Equity Bank CEO James Mwangi as Court Refuses to Stay Execution of Sh1 Billion Muthaiga Mansion Eviction

    Blow to Equity Bank CEO James Mwangi as Court Refuses to Stay Execution of Sh1 Billion Muthaiga Mansion Eviction

    Equity Bank Group Chief Executive James Mwangi suffered a devastating blow yesterday when the Court of Appeal declined to halt the execution of a judgment ordering him out of his sprawling Sh1 billion Muthaiga mansion, instead directing him to deposit Sh10 million as security while his appeal proceeds.

    In a ruling that has sent shockwaves through Kenya’s business elite, Justices Daniel Musinga, Patrick Kiage and Agrey Muchelule refused to grant the banking titan’s desperate bid to stop enforcement of the Environment and Land Court judgment that found him occupying another man’s property.

    The appellate judges ordered Mwangi and his wife Jane Wangui Mundia to deposit the Sh10 million in an interest-bearing joint account within 60 days, with strict instructions that the status quo over the contested three-acre property be maintained pending the hearing of their appeal.

    But the humiliation for one of Kenya’s most powerful executives runs deeper. Court documents filed on January 7 this year reveal that Mount Pleasant Limited has already executed the lower court’s eviction order under the supervision of Gigiri police, effectively seizing possession of the property from under Mwangi’s feet.

    “The above court order has been executed today the 07/01/2026 under supervision of the OCS Gigiri and now the plaintiff Mount Pleasant Ltd has now gained possession of the property,” reads the damning document signed by Gigiri police boss and filed in court.

    The development marks a spectacular fall from grace for Mwangi, whose rags-to-riches story has made him a poster child for African entrepreneurship. The CEO now faces the ignominy of having been physically removed from a property he claimed to have bought from former President Daniel arap Moi for Sh306 million in 2013.

    The drama surrounding the Muthaiga property has exposed a murky tale of contested ownership, missing files at the Ministry of Lands, duplicate titles and allegations of tampering with land registry records that paint an unflattering picture of how Kenya’s wealthy acquire prime real estate.

    At the heart of the dispute lies businessman Anverali Amershi Karmali, who through his firm Mount Pleasant Limited insists he purchased the property from Moi-era Finance Minister Arthur Magugu and his wife Margaret Wairimu in July 2006 for Sh130 million, a full seven years before Mwangi claimed to have acquired it from Moi.

    Justice Oscar Angote of the Environment and Land Court delivered the crushing October 2025 judgment that ordered Mwangi and his wife to vacate within 30 days or face forcible eviction by police from Gigiri and Muthaiga stations.

    The judge went further, slapping the couple with a Sh10 million damages award for trespass, taking into account the property’s premium location, its three-acre size, the duration of the alleged trespass spanning several years and its current valuation of Sh1 billion according to 2022 reports.

    Justice Angote also ordered the Chief Land Registrar to expunge and cancel all entries, conveyances and titles relating to Mwangi’s purported ownership and to nullify the amalgamation of the subdivided parcels into a single title, effectively erasing any record of the banker’s claim to the property.

    The court found that while Mwangi claimed to have taken possession immediately after receiving his title in 2013, Mount Pleasant’s security guards had remained on the property from 2013 until March 2020, when they were allegedly evicted by the Mwangis.

    Justice Angote noted that although the Directorate of Criminal Investigations had not made any conclusive forensic determination on claims of forgery, the documentary evidence revealed significant anomalies when assessed on the balance of probabilities.

    “While the court stops short of finding fraud attributable to Mwangi and his wife to the requisite standard of proof, it nonetheless holds that the numerous procedural and documentary irregularities surrounding the conveyance, amalgamation and registration of their title would, on their own, suffice to impeach it,” the judge ruled.

    Court documents paint a picture of a property saga riddled with irregularities stretching back nearly two decades. Magugu had initially charged the property to National Bank in the late 1980s through MDC Holdings Limited to secure a Sh10.5 million loan. When the company defaulted, the bank sued to recover its money, eventually striking a deal in October 2002 where the property would be sold for Sh90 million to settle the debt and compensate Magugu.

    Karmali alleges that after he purchased the property in good faith, someone began tampering with land registry records, making it difficult to trace the chain of ownership. When he went to the Ministry of Lands to conduct a search, the file containing the property’s history had mysteriously vanished.

    The situation descended into open warfare in June 2020 when Mwangi allegedly showed up at the property accompanied by police officers who removed Karmali’s security guards and replaced them with their own, prompting the businessman to rush to court.

    Karmali claims he was shocked to discover that both parties had obtained certificates from the land registry showing they were the registered owners of the same property, raising serious questions about the integrity of Kenya’s land registration system.

    For Mwangi, whose leadership has transformed Equity Bank from a struggling building society into a regional banking powerhouse, this legal defeat represents an embarrassing personal setback. The CEO, who has cultivated an image of financial prudence and ethical business practices, now faces uncomfortable questions about how he came to occupy a property with such a contested ownership history.

    The Court of Appeal has directed that the appeal be fast-tracked, ordering the parties to attend a case management conference within 30 days and to file written submissions ahead of the hearing.

    Until then, Mwangi must comply with the Sh10 million security order and watch from the sidelines as Mount Pleasant Limited enjoys quiet possession of the contested Muthaiga estate, a bitter pill for a man who has spent decades building an empire on the back of microfinance only to find himself on the wrong side of a property dispute that has laid bare the chaos in Kenya’s land ownership system.

  • KRA Can Now Tax Unexplained Bank Deposits

    KRA Can Now Tax Unexplained Bank Deposits

    Kenyans with unexplained money flowing into their bank accounts and mobile money wallets now face the prospect of paying tax on these deposits after the Tax Appeals Tribunal handed the Kenya Revenue Authority fresh powers to treat undocumented cash as taxable income.

    In a landmark ruling that signals a major shift in how the taxman pursues revenue, the tribunal has determined that the burden of proof lies squarely with account holders to demonstrate that their deposits are not income. The decision effectively reverses the traditional approach where KRA had to prove that money was taxable before demanding payment.

    The ruling emerged from a dispute between KRA and Virginia Wangari, a Naivasha hotel businesswoman, whom the authority assessed for Sh6.5 million in taxes after discovering Sh52.6 million in unexplained bank and M-Pesa deposits between 2018 and 2022. After adjusting for supported non-income items, KRA treated net deposits of Sh50.9 million as taxable income and applied an industry profit margin of 18.49 percent for the hospitality sector.

    Wangari challenged the assessment, arguing that KRA had wrongly assumed all deposits were income, ignored her explanations, applied an arbitrary margin, and subjected her to double taxation. However, the tribunal dismissed her appeal, holding that tax assessments by the Commissioner enjoy a presumption of correctness until rebutted by documentary evidence.

    The tribunal emphasized that taxpayers must produce bank reconciliations, source documents, ledgers, or contracts to show that funds were capital injections, loans, or agency collections. General explanations without supporting documentation, the panel ruled, do not displace tax liability.

    Tax experts say the ruling represents a significant escalation in KRA’s enforcement powers and places millions of Kenyans at risk of unexpected tax bills if they cannot adequately document the sources of their income. The decision comes at a time when President William Ruto’s administration has intensified its crackdown on tax evasion to boost revenue collection without imposing new taxes following the deadly anti-tax protests of 2024 that claimed over 50 lives.

    The ruling builds on another controversial case involving Kirin Pipes Limited, where the tribunal upheld a Sh21.6 million tax assessment after the company failed to prove that deposits into its accounts between 2019 and 2022 were loans or shareholder capital rather than undeclared sales revenue. KRA had initially assessed the pipe manufacturer for Sh34.3 million in income tax and Sh22.6 million in VAT after its banking analysis revealed unexplained deposits.

    In that case, Kirin Pipes argued that shareholders had injected Sh29.4 million in additional capital, secured a Sh31.6 million loan from Nanchang Municipal Engineering Development, and received Sh24.6 million from shareholders to fund operations. The company also claimed some deposits were advance payments from clients that were later invoiced and declared for tax purposes.

    However, the tribunal found that the company had provided uncertified bank statements and vague SWIFT confirmation slips without corroborating documents such as board resolutions, updated CR12 records showing revised shareholding, or evidence of loan repayment. The loan agreement itself was deemed problematic as it was interest-free, open-ended, and had no repayment timeline.

    Samuel Mwaura, Tax Partner at Grant Thornton Kenya, warns that the rulings signal a new era of aggressive tax enforcement. He predicts an increase in litigation as the authority disallows expenses not supported by electronic tax invoices, even when they represent genuine business costs.

    The legal backing for KRA’s approach comes from Section 3 of the Income Tax Act, which broadly defines income to include business profits, employment earnings, rent, dividends, interest, pensions, and other gains or benefits unless specifically exempted. This means any unexplained deposits, when not backed by proper documentation such as loan agreements or shareholder capital records, fall within the definition of taxable income.

    KRA has clarified that the ruling does not give it blanket powers to tax every deposit made into personal or business accounts. The authority maintains that properly documented funds, such as loan proceeds, shareholder capital, or transfers supported by verifiable records, are not subject to taxation. However, the onus is on taxpayers to provide this documentation when challenged.

    The enforcement push is part of a broader strategy by KRA to leverage technology and data analytics to identify tax evaders. From January 2026, the authority launched an automated digital system that validates income and expenses declared in tax returns against electronic tax invoices, withholding tax records, and import declarations from customs systems.

    This new validation system, integrated into the iTax platform, flags mismatches in income declarations, VAT claims, and withholding tax data in real time. All declared income and expenses must now be supported by valid electronic tax invoices correctly transmitted with the buyer’s PIN, subject to exceptions provided under the Tax Procedures Act.

    The digital crackdown extends beyond bank deposits to target the entire spectrum of business operations. KRA’s enforcement unit has been using various databases to pursue suspected tax cheats, including bank statements, import records, motor vehicle registration details, Kenya Power records, water bills, and data from the Kenya Civil Aviation Authority, which reveals individuals who own assets such as aircraft.

    Car registration details are being used to identify individuals driving high-end vehicles but remitting little in taxes, while Kenya Power meter registrations help the taxman identify landlords who have been slapped with huge tax demands. The authority has also sought details of suppliers and contractors hired by county governments to tighten the noose on individuals and firms evading tax.

    The banking analysis method, treating unexplained deposits as income, is increasingly becoming KRA’s weapon of choice during audits. The tribunal has cited earlier rulings holding that all bank deposits are taxable unless the account holder explains, with evidence, why they should not be taxed.

    For businesses, the implications are profound. Companies that rely on informal suppliers who cannot issue electronic tax invoices face a dilemma. Unless expenses are documented electronically, KRA will assume the money remains in the business’s pocket and treat it as profit subject to tax.

    Consider a small agribusiness that buys fertilizer and seeds from a rural supplier who has no PIN and cannot issue an electronic tax invoice. If the business paid Sh400,000 for these inputs, KRA will automatically treat that amount as profit, even though it was spent on genuine business expenses. Similarly, if a business spent Sh1 million in total but only Sh300,000 has electronic documentation, the remaining Sh700,000 will inflate profits, increasing the company’s tax bill and squeezing cash flow.

    Self-employed professionals, including consultants, advisors, trainers, and freelancers, are among the most exposed under the new regime. KRA is now cross-referencing withholding tax records submitted by clients against annual income tax returns. When a client pays a consultant, they are required to deduct withholding tax at source and remit it directly to KRA. If a consultant files a nil return, under-declares income, or omits consultancy fees already subjected to withholding tax, the system automatically flags the account, triggering audits, penalties, and enforcement actions that may include bank account freezes or asset seizures.

    Tax practitioners advise businesses and individuals to maintain meticulous records of all transactions, including bank reconciliations, source documents, ledgers, contracts, and board resolutions. They recommend setting aside between 25 and 30 percent of earnings for tax obligations to ease cash flow pressure and engaging certified tax professionals to reduce exposure to compliance risks.

    The tribunal rulings come as KRA faces mounting pressure to meet revenue targets amid persistent shortfalls. Official data shows the authority collected Sh2.257 trillion in the year through June 2025, missing its revised target by Sh47.3 billion. This marked the third consecutive annual shortfall, exacerbating fiscal pressure at a time when public debt has surpassed Sh11.5 trillion.

    The expanded enforcement coincides with major restructuring at KRA’s Times Tower headquarters, including recruitment for senior positions such as Deputy Commissioners, as the authority seeks to improve collection, particularly from the informal economy where compliance remains low.

    However, the aggressive push has not been without controversy. Banks initially blocked KRA’s attempt to integrate its system with that of 38 lenders amid fears that the taxman could access sensitive personal information such as cash flows in accounts without adequate safeguards. Bankers expressed concern that KRA could use the integration to access customer information unlawfully, exposing banks to lawsuits and penalties from the data protection watchdog.

    The plan to access sensitive personal data, including details of properties owned and bank accounts as well as cash transfers on mobile phones without a court warrant, was initially included in the Finance Bill 2024 but was scuppered by the withdrawal of the bill following the anti-tax protests.

    Despite these concerns, KRA has forged ahead with its enforcement agenda, determined to widen the tax base and boost revenue collection through technology and data analytics. The authority maintains that its approach is justified under existing law and that taxpayers who maintain proper records have nothing to fear.

    For ordinary Kenyans, the message is clear. Every deposit into a bank account or mobile money wallet must now be accounted for with proper documentation. Failure to do so could result in an unexpected tax bill that presumes the money is income unless proven otherwise. In this new era of digital tax enforcement, the burden of proof has shifted decisively from the taxman to the taxpayer.

  • Cooking Fuel Firm Koko Collapses After Govt Blocks Sh23bn Carbon Deal

    Cooking Fuel Firm Koko Collapses After Govt Blocks Sh23bn Carbon Deal

    Government’s Rejection of Carbon Credit Sales Triggers Instant Shutdown of Clean Energy Pioneer, Crushing Dreams of 1.5 Million Poor Households

    Nairobi’s Baba Dogo industrial area fell silent on Friday evening after clean cooking fuel firm Koko Networks made the dramatic decision to shut down all operations and send home its entire 700-strong workforce, following a bitter standoff with the Kenyan government over carbon credit sales that has cost the country billions of shillings in climate financing and left more than 1.5 million low-income households facing a return to dangerous and polluting charcoal.

    The collapse of the once-celebrated climate technology company came after two days of tense boardroom deliberations, during which executives wrestled with the harsh reality that without government approval to sell carbon credits internationally through a Letter of Authorisation, the company’s entire business model had become financially unviable overnight.

    Management delivered the crushing news to staff members on Friday afternoon, telling them not to report to work on Monday.

    The abrupt closure marks one of the most spectacular corporate failures in Kenya’s emerging clean energy sector and raises serious questions about the government’s commitment to supporting climate action despite its public pronouncements on environmental protection.

    “We are just from a meeting with the management, and they have communicated the decision to close operations. Nobody is supposed to be in the office tomorrow, the decision has been made,” a devastated staff member told Business Daily on Friday, speaking on condition of anonymity.

    The shutdown represents a stunning reversal of fortune for a company that just eight months ago was celebrating a historic Sh23.18 billion guarantee from the World Bank’s Multilateral Investment Guarantee Agency, the largest political risk insurance policy ever issued to support carbon market activities under the Paris Agreement.

    At the heart of Koko’s collapse lies the government’s refusal to issue a Letter of Authorisation that would have allowed the company to sell its carbon credits in lucrative international compliance markets, particularly the Carbon Offsetting and Reduction Scheme for International Aviation, which requires credits backed by government approval and corresponding adjustments under Article 6 of the Paris Agreement.

    The LOA rejection has effectively strangled Koko’s revenue stream. The company had generated approximately six million tonnes of carbon credits annually through its operations, which involved replacing charcoal and firewood with cleaner bioethanol cooking fuel in low-income households. These credits, certified under the rigorous Gold Standard methodology, were supposed to fund the massive subsidies that made Koko’s products affordable to Kenya’s poorest families.

    Without carbon credit revenues, the mathematics of Koko’s business model simply do not work. The company was selling bioethanol at Sh100 per litre, half the market price of Sh200, while absorbing an even more dramatic subsidy on its cooking stoves, which retailed at Sh1,500 compared to a true cost of Sh15,000. This nine-tenths discount on hardware alone required consistent carbon credit sales to international buyers willing to pay premium prices for high-integrity, correspondingly adjusted credits.

    The government’s decision appears particularly puzzling given that Kenya has been actively developing its carbon market infrastructure and passed amendments to the Climate Change Act in 2023 specifically to enable participation in Article 6 mechanisms. The country has also been drafting regulations for a National Carbon Registry designed to facilitate the issuance of Letters of Authorisation and track corresponding adjustments.

    Industry insiders suggest the LOA rejection may stem from broader concerns about how Kenya manages its carbon accounting under its Nationally Determined Contributions to the Paris Agreement. When the government issues an LOA and applies corresponding adjustments, it must subtract those carbon reductions from its own national climate targets, potentially making it harder to demonstrate progress on emissions reduction commitments.

    However, this explanation rings hollow to many observers who note that Koko’s projects were delivering genuine, additional carbon reductions that would not have occurred otherwise. The company had issued over 10 million vintage credits from 2021 to 2024 and was on track to continue generating substantial volumes that could have attracted hundreds of millions of dollars in foreign climate finance.

    The timing of the collapse could not be worse for Kenya’s clean cooking sector. The country has been struggling to transition households away from charcoal and firewood, which contribute to deforestation, indoor air pollution, and health problems that kill thousands of Kenyans annually. Koko had emerged as the most successful scalable solution, reaching 1.5 million customers across eight cities including Nairobi, Mombasa, Kisumu and Nakuru.

    The company’s innovative distribution model, which placed over 3,000 cloud-connected automated refilling machines at small shops owned predominantly by female entrepreneurs, had created employment and income opportunities for thousands of agents while providing convenient access to clean fuel in low-income neighborhoods where such services are typically scarce.

    The economic devastation extends far beyond Koko’s direct workforce. The company employed 650 people directly in Kenya and worked with thousands of agents and distributors. Its supply chain included partnerships with major firms like Vivo Energy for bioethanol procurement and Indian manufacturer SAARUS for cookstove production. All of these stakeholders now face uncertain futures.

    For Koko’s 1.5 million customers, the shutdown represents a forced return to dirtier, more dangerous cooking methods. With liquefied petroleum gas prices averaging Sh1,350 for a six-kilogram refill, far beyond the reach of most low-income households, many will have no choice but to resume using charcoal and kerosene despite the health risks and environmental damage.

    The collapse also raises troubling questions about the effectiveness of development finance instruments. The World Bank’s MIGA guarantee was specifically designed to protect against political risks including breach of contract by host governments. However, it appears the insurance mechanism could not prevent the government decision that ultimately destroyed Koko’s business model.

    MIGA’s guarantee was supposed to enable Koko to expand to serve three million additional customers by December 2027, supporting Kenya’s clean cooking targets and climate commitments. That expansion plan now lies in ruins, along with the potential for billions of shillings in additional investment and the environmental benefits that would have flowed from displacing millions of tonnes of charcoal consumption.

    Founded in 2013 by entrepreneur Greg Murray to combat deforestation driven by charcoal production, Koko had raised over $100 million in debt and equity financing from investors including Mizuho Bank of Japan, Rand Merchant Bank of South Africa, France’s Mirova, and the Microsoft Climate Innovation Fund. The company was recognized in 2021 as the world’s leading emerging markets climate technology solution by the Financial Times and International Finance Corporation.

    The startup had been selected as a “Lighthouse” project by the African Carbon Markets Initiative precisely because of the high integrity of its carbon credits and the genuine development impact of its operations. Japanese trading giant ITOCHU had signed an emissions reductions purchase agreement to market Koko’s credits in Asian compliance markets.

    All of that promise has now evaporated in the span of 48 hours, destroyed by a government decision whose full rationale remains unclear. By press time, Koko Networks had not responded to requests for comment submitted through the company’s media portal. The Ministry of Environment and Climate Change also did not respond to inquiries about the reasons for rejecting the LOA application.

    The Koko collapse stands as a cautionary tale about the challenges of building climate technology businesses in emerging markets, where regulatory uncertainty and political risk can destroy even the most innovative and well-funded enterprises. For Kenya’s ambitions to become a leader in African carbon markets and attract climate finance, the episode sends a deeply troubling signal to investors who may now question whether the government is a reliable partner for carbon market development.

    As Koko’s automated fuel dispensing machines fall silent across Nairobi’s low-income neighborhoods and charcoal smoke begins rising once again from millions of cookstoves, the human and environmental costs of this regulatory failure will become impossible to ignore. What was supposed to be a model for using carbon markets to deliver clean energy access to Africa’s poor has instead become a stark reminder of how quickly political decisions can crush climate progress and entrepreneurial innovation.

    The government now faces mounting pressure to explain how it plans to support the 1.5 million households left stranded by Koko’s closure and what steps it will take to restore confidence among climate investors who are watching Kenya’s carbon market prospects with increasing skepticism.

  • Broke Zakhem International Unable to Pay Sh460 Million Debt, Attempts to Play Court

    Broke Zakhem International Unable to Pay Sh460 Million Debt, Attempts to Play Court

    A once powerful Lebanese contractor at the heart of Kenya’s flagship pipeline project is now staring at financial ruin, with court filings painting a picture of a company that cannot pay its debts and is desperately manoeuvring through the justice system to buy time.

    Zakhem International Construction Limited is locked in a bitter Sh460 million debt battle with Kenyan subcontractor Azicon Kenya Limited, a dispute that has dragged on for years and is now tipping into full blown insolvency proceedings. The High Court has in recent weeks delivered a fresh blow to the foreign firm, rejecting its attempt to suspend contempt of court proceedings even as a liquidation petition hangs over its head  .

    At the centre of the fight is unpaid work on the multibillion shilling Mombasa to Nairobi oil pipeline replacement project commissioned by the Kenya Pipeline Company.

    Azicon says it was hired by Zakhem to carry out electrical, instrumentation and telecommunications works under a subcontract worth about Sh1.3 billion. While the Lebanese firm was allegedly paid in full by KPC, Azicon claims it only received about Sh840 million, leaving a balance of more than Sh460 million that has remained unpaid since 2020  .

    Court records show that Azicon obtained a decree compelling Zakhem to settle the debt, but years later the money has not been forthcoming. Instead, the Lebanese firm has mounted a string of legal objections, arguing that enforcement proceedings, contempt applications and insolvency suits amount to double jeopardy. Judges have been unconvinced, with the High Court noting that Zakhem had approached the wrong court and failed to follow basic procedural rules in its latest bid to halt the proceedings  .

    Behind the legal skirmishes lies a more damaging allegation. Azicon has accused Zakhem International of deliberately stripping itself of assets to frustrate creditors, including transferring dozens of vehicles and parcels of land to related companies with no known commercial activity. The Kenyan firm has asked the court to lift the corporate veil and hold individuals personally liable, arguing that the transactions were designed to render Zakhem judgment proof.

    Zakhem denies wrongdoing and insists it is being unfairly hounded, at times claiming it was still awaiting payment from KPC. That position has been contradicted in court by affidavits showing that the state oil firm is not holding any funds on its behalf, a contradiction that has further weakened Zakhem’s credibility before the bench  .

    The insolvency petition now before the High Court could mark the beginning of the end for Zakhem’s operations in Kenya. If the court finds that the company is unable to pay its debts as they fall due, liquidation could follow, exposing directors to personal risk and sending a chilling message to foreign contractors operating in the country.

    For local suppliers and subcontractors, the case has become a symbol of the power imbalance in mega infrastructure projects, where small Kenyan firms can be left gasping for years as well funded foreign contractors deploy legal firepower to delay payment. As one judge warned in open court, decrees are not decorative pieces of paper.

    Zakhem’s fall from grace is stark. From handling strategic national infrastructure, the firm is now fighting to stay out of civil jail, accused of asset concealment and staring down the prospect of liquidation. For Azicon and other creditors, patience appears to have run out.

  • Details of Ida Odinga’s Job at UNEP

    Details of Ida Odinga’s Job at UNEP

    Canon Dr Ida Betty Odinga is set to take up one of Kenya’s most strategic diplomatic positions as the country’s Ambassador and Permanent Representative to the United Nations Environment Programme, subject to parliamentary approval.

    President William Ruto nominated the widow of former Prime Minister Raila Odinga for the high-profile role on January 23 through Presidential Action No. III of 2026. The nomination, transmitted to the National Assembly by Chief of Staff Felix Koskei, positions her at the centre of Kenya’s global environmental diplomacy.

    If approved by Parliament, Mama Ida will head Kenya’s mission to the United Nations and lead the country’s participation in high-level negotiations on environmental conventions and multilateral environmental agreements.

    The position places her at the heart of global climate diplomacy, a critical portfolio given Kenya’s leadership role in green energy and sustainable development initiatives.

    As the permanent representative, she will be responsible for Kenya’s engagement with the UNEP Governing Council and the United Nations Environmental Assembly, the world’s highest decision-making body on environmental issues. The Assembly, which convenes every two years, brings together ministers of environment and other representatives from all 193 UN member states to set the global environmental agenda and promote coherent implementation of environmental policies.

    A key aspect of the role involves oversight of the Committee of Permanent Representatives, an intersessional subsidiary body that regularly reviews the implementation of UN Environment Assembly outcomes, guides the development of UNEP’s programme of work and budget, and provides oversight of the secretariat’s activities. This committee meets quarterly and comprises accredited representatives from all UN member states.

    Since Kenya hosts the UN headquarters in Nairobi, the position also carries host-country obligations. Mama Ida will serve as a crucial bridge between the UN and the Kenyan government, facilitating diplomatic relations and ensuring smooth operations for the international body on Kenyan soil. The office is responsible for promoting Nairobi as the UN’s Global South headquarters by lobbying for the expansion of UN agencies in the city and securing more international conferences and programmes.

    According to UN protocols, permanent representatives are ambassadors appointed by their state or government to represent the country at UN headquarters. They head the permanent mission of their country, typically supported by a deputy permanent representative and specialized staff who work on various UN committees including those dealing with political affairs, finance, and administrative matters.

    The appointee will replace Ababu Namwamba, who was recently reassigned to serve as High Commissioner to Uganda. The diplomatic posting keeps Mama Ida in Nairobi’s Gigiri area, where UNEP is headquartered, maintaining her visibility and accessibility within Kenya’s political landscape.

    The 75-year-old brings decades of experience in education, civic leadership, and advocacy for social justice and gender equity to the role. Born Ida Anyango Oyoo on August 24, 1950, in Migori County, she is the daughter of Nehemiah Oyoo, a medical assistant at Nyanza Hospital in Kisumu, and Rosa Oyoo, who was among Kenya’s first black nurses.

    Her father passed away when she was only seven years old, leaving her mother to raise six children in difficult circumstances. Despite the hardship, Mama Ida excelled academically, attending Ogande Girls High School before earning a Bachelor of Arts degree from the University of Nairobi in 1973.

    She began her professional career as a teacher at Highway Secondary School in Nairobi before joining Kenya High School, where she spent over two decades shaping the minds of future leaders. Among her notable students was the late Joyce Laboso, who became Governor of Bomet County. However, her teaching career was cut short when the Kenya African National Union government expelled her from her position due to her husband’s political opposition to President Daniel arap Moi’s regime.

    The expulsion proved to be a turning point. In 1991, she founded the League of Kenya Women Voters, an organization dedicated to promoting opportunities for women in the political arena. She served as national chairperson until the early 2000s, championing women’s rights during a period when political activism was fraught with danger.

    In 2003, Mama Ida took on the role of managing director at East African Spectre, a family-owned liquefied gas cylinder manufacturing company. This appointment made her one of the first women to head a major Kenyan corporation, a feat that earned her recognition as one of Kenya’s most powerful women by The Standard newspaper in 2010.

    Her advocacy work spans multiple causes, with particular focus on women’s health and education. She has been a leading voice in breast cancer and fistula awareness campaigns, and in 2009 was nominated as Ambassador for Freedom from Fistula. She has also championed programmes to eradicate the chigoe flea, mentored schoolgirls, and served on the board of the Kenya Paraplegic Association.

    Speaking publicly about her nomination for the first time during a dedication ceremony at Pentecostal Evangelistic Fellowship of Africa Church in Roysambu on January 25, Mama Ida expressed gratitude and resilience. “Thank you to those who have congratulated me. To me, this is an honour. No one will intimidate me. No one will frighten me because the Lord is my shepherd,” she said, citing Psalms 23.

    Her remarks came amid criticism from some opposition leaders who questioned the appointment. ODM deputy party leader and Vihiga Senator Godfrey Osotsi argued that the UNEP position was “too small” for her stature, urging her to reject the offer. Similarly, Democracy for Citizens Party deputy leader Cleophas Malala described the nomination as a “misplaced priority,” suggesting that ordinary women needed more direct support.

    However, Mama Ida remained undeterred. “These days, every time I switch on the TV, I see they are talking about me. Every time I buy the newspaper, it’s ‘Ida Odinga.’ But I don’t fear anything; God is with me,” she told congregants at the church service.

    In his nomination statement, President Ruto described Mama Ida as a distinguished educationist, pro-democracy champion, and advocate for gender equity. “Her life’s work stands as testament to the highest ideals of selfless service, defined by courage, sacrifice, grace under fire and an unceasing commitment to advancing women’s education and empowerment,” the statement from Koskei’s office read.

    The President added that her appointment is expected to amplify Kenya’s voice on environmental issues and reinforce the country’s longstanding leadership in environmental diplomacy. Kenya’s role as host to UNEP, the UN’s principal environmental authority, makes the position particularly significant for the country’s international standing and influence on global climate policy.

    The nomination comes at a pivotal moment for Kenya’s environmental agenda. The country has been positioning itself as a leader in climate action, renewable energy, and sustainable development in Africa. Kenya hosted the UN Environment Assembly’s fifth session in 2022 and has been instrumental in pushing for ambitious global commitments on plastic pollution, biodiversity conservation, and climate financing.

    Political analysts view the appointment as strategically significant, potentially serving multiple purposes beyond environmental diplomacy. Some see it as part of a broader political realignment that honours the legacy of Raila Odinga while neutralizing traditional opposition strongholds in Luo Nyanza. Others interpret it as recognition of Mama Ida’s own substantial contributions to public service, independent of her late husband’s political career.

    The appointment marks a new chapter for Mama Ida, who lost her husband in October 2025. Throughout their 52-year marriage, she stood by Raila through political detention, exile, and numerous election battles. She raised their four children largely alone during his imprisonment by the Moi government in 1982, managing on her teacher’s salary while living on the Kenya High School campus before her own expulsion.

    The couple had four children: the late Fidel Castro Odinga, who died in 2015; Winnie Irmgard Odinga; Rosemary Akeyo Odinga; and Raila Junior. Their family life was marked by both tragedy and triumph, with Mama Ida suffering two miscarriages and a stillbirth before successfully expanding their family.

    Her transition from the chaotic arena of opposition politics to the diplomatic corridors of the United Nations represents a significant shift in her public role. If confirmed by Parliament, she will trade campaign rallies and political protests for international negotiations and global environmental summits, bringing her decades of advocacy experience to bear on critical issues affecting Kenya and the world.

    The vetting process is expected to move swiftly through the National Assembly, with the appointment requiring parliamentary approval under constitutional requirements governing appointments to the Foreign Service. Once confirmed, Mama Ida will present her credentials to the Director-General of the United Nations Office at Nairobi, officially assuming her duties as Kenya’s voice on global environmental matters.

    Her appointment also brings personal significance beyond politics and diplomacy. As a Canon at the Anglican Church of Kenya, she has long been involved in faith-based community work, adding another dimension to her public service portfolio. This spiritual foundation appears to be sustaining her through the transition from political widow to global diplomat, as evidenced by her repeated scriptural references when addressing critics.

    For Kenya, the nomination of Mama Ida Odinga to this crucial environmental post signals continuity in the country’s commitment to climate action while potentially opening new avenues for diplomatic engagement. Her lived experience of sacrifice, resilience, and advocacy for marginalized communities could bring fresh perspectives to global environmental discussions, particularly on issues affecting developing nations.

    As she prepares to step into this new role, pending parliamentary approval, Mama Ida carries with her not just the weight of her late husband’s political legacy, but her own substantial record of service, activism, and leadership spanning more than five decades. Her journey from a teacher’s classroom to the global stage of environmental diplomacy embodies both personal triumph and Kenya’s evolving place in international affairs.

  • KRA Blocks Nil Tax Filings in Major Push to Widen Tax Net

    KRA Blocks Nil Tax Filings in Major Push to Widen Tax Net

    The Kenya Revenue Authority has thrown down the gauntlet to millions of registered taxpayers who routinely declare zero income, blocking nil tax return filings until May in an aggressive move to convert non-compliant individuals and businesses into active revenue contributors.

    The unprecedented suspension, announced Friday by Deputy Commissioner for Taxpayer Experience Patience Njau, exposes a glaring disparity in Kenya’s tax system: of 22 million registered Personal Identification Number holders, only eight million actively file returns, with a mere four million consistently paying taxes.

    That leaves a country of 50 million people dependent on less than one percent of its population to shoulder the tax burden, a skewed reality KRA now intends to correct through what officials describe as the most comprehensive data validation exercise in the authority’s history.

    “This year, our focus will be very different as we aim to convert nil and non-filers and zero payers into paying taxpayers,” Njau said during a press briefing that sent ripples through tax advisory circles. “We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMS, and customs, among others.”

    The suspension runs until May 1, giving KRA nearly four months to cross-check declared nil returns against a growing arsenal of digital records.

    The taxman will scrutinize eTIMS invoices, withholding tax submissions, employment income data, financial transmission records and customs declarations to identify taxpayers earning income but declaring none.

    For taxpayers who attempted to file nil returns this week, the message was blunt. “Kindly note the Nil return option is temporarily unavailable. Kindly be patient as it is scheduled to be restored on May 1st,” KRA responded to queries on social media platform X.

    The timing creates a squeeze: with the statutory filing deadline still June 30, taxpayers accustomed to filing early now face a compressed window and heightened scrutiny. KRA insists this is deliberate.

    “Between now and the end of March, you cannot file nil returns for your 2025 income,” Njau explained. “Nil filing will be reopened once we have reviewed the data and confirmed that no transactions occurred during the year. This is meant to ensure that the tax burden is shared more fairly.”

    The enforcement drive arrives against a backdrop of record revenue collection. In December alone, KRA netted 251.52 billion shillings, the highest monthly haul in its 30-year history, representing 15.88 percent year-on-year growth. For the full 2024/25 financial year, the authority collected 2.57 trillion shillings, growing revenue by 6.8 percent despite economic headwinds.

    But KRA argues the impressive figures mask systemic inequity. Salaried workers captured through Pay As You Earn deductions account for the bulk of compliant taxpayers, while vast swathes of the informal economy, rental income earners and businesses operating below the radar continue to evade their obligations.

    The authority has rolled out complementary measures to tighten the net. Starting this January, KRA began automated validation of all income and expenses declared in tax returns against internal data sources. Claims that cannot be verified electronically through eTIMS invoices, withholding tax records or customs data face disallowance.

    A “Special Table” system now restricts persistent nil filers, businesses that have failed to file VAT returns for six months, traders without eTIMS compliance and operators engaged in schemes such as claiming fictitious input tax from submitting returns until they regularize their records.

    The deadline for businesses to adopt eTIMS and resolve outstanding compliance issues is March 31. Entities that fail to comply risk deregistration or penalties. More than 100,000 businesses currently face deregistration for VAT non-compliance alone, according to KRA data.

    The authority has attempted to soften the blow with taxpayer-friendly initiatives. Commissioner General Humphrey Wattanga announced a WhatsApp chatbot offering 15 services, including tax filing assistance, available 24/7 through the number +254 711 099 999. KRA has also introduced automated payment plans allowing taxpayers to clear outstanding liabilities, including penalties and interest, through structured instalments of up to six months.

    “We are shifting toward data-driven enforcement aimed at distinguishing between inadvertent non-compliance and deliberate tax evasion,” Njau said.

    The move reflects KRA’s growing technological sophistication. The Electronic Tax Invoice Management System, fully rolled out in 2023, now provides real-time visibility into business transactions. Integration with banks, telecommunications firms, insurance companies and utility providers gives the taxman unprecedented access to taxpayer financial footprints.

    For genuine nil filers, those truly without taxable income, students, unemployed individuals or those below the 24,000 shilling monthly threshold, KRA maintains they remain legally permitted to submit nil returns once validation exercises conclude. But they may need to provide supporting documents such as bank statements or affidavits to prove their status.

    Tax advisors warn clients to prepare for heightened scrutiny. “The days of filing nil returns as a default compliance measure are over,” said one Nairobi-based tax consultant who requested anonymity. “KRA now has the tools to see everything. If you earned income, they will find it.”

    The suspension comes as KRA pursues an ambitious 2.968 trillion shilling collection target for the 2025/26 financial year, representing 15.4 percent growth. To hit that number, the authority needs every registered taxpayer paying their fair share.

    Whether the hardline approach succeeds in widening the tax base or simply pushes more economic activity underground remains to be seen. What is clear is that the era of easy nil returns has ended, and millions of Kenyans now face a reckoning with the taxman.

  • Kenya Stares At Health Catastrophe As US Abandons WHO, Threatens Billions In Disease Fighting Programmes

    Kenya Stares At Health Catastrophe As US Abandons WHO, Threatens Billions In Disease Fighting Programmes

    Kenya is facing a potential health system collapse after the United States officially completed its withdrawal from the World Health Organisation on Thursday, a move that threatens to unravel decades of progress in fighting HIV, malaria, tuberculosis and other killer diseases.

    The exit, which comes after 78 years of American membership in the global health body, has sent shockwaves through the Ministry of Health as officials grapple with the reality of losing the single largest source of international health funding at a time when disease burdens remain stubbornly high.

    America’s departure from WHO, combined with sweeping cuts to bilateral health programmes including the President’s Emergency Plan for AIDS Relief, represents what health experts are calling the greatest disruption to global health financing in living memory. For Kenya, the implications are nothing short of catastrophic.

    The numbers tell a grim story. According to WHO records, the United States contributed a staggering 1.284 billion dollars, equivalent to 165.5 billion shillings, during the 2022 to 2023 funding cycle alone. This represented approximately 18 percent of the organisation’s total budget, making America the WHO’s financial backbone.

    Dr Patrick Amoth, Director General for Health at the Ministry of Health, acknowledged the severity of the situation when he told Saturday Nation that the US departure represents a significant blow since America was the single largest contributor to WHO resources.

    “It is a blow, but WHO has started the process of ensuring mitigation measures are in place by ensuring countries gradually increase their assessed contributions,” Dr Amoth said, though his words offered little comfort to health workers on the ground who are already seeing the effects of funding cuts.

    The WHO had been supporting critical programmes in Kenya including reproductive, maternal, newborn and child health, development of health products and technologies, non-communicable diseases, and communicable diseases. Their support, in Dr Amoth’s words, “has been broad.”

    But the crisis extends far beyond WHO funding. The Trump administration’s simultaneous freeze on foreign aid programmes has effectively gutted PEPFAR, the largest commitment by any nation to address a single disease in history. Since its inception in 2003, PEPFAR has invested over 100 billion dollars in the global HIV response, saving 25 million lives and preventing millions of infections.

    Kenya, identified as one of PEPFAR’s priority countries, now faces the terrifying prospect of its HIV treatment programmes grinding to a halt. Modelling studies paint a nightmarish picture. Research published in leading medical journals estimates that funding disruptions could result in 565,000 new HIV infections over the next decade in sub-Saharan Africa alone, with Kenya accounting for a significant portion.

    Even more disturbing, analysis of the 90-day PEPFAR funding freeze earlier this year found that 71 percent of implementing partners reported cancellation of at least one category of activities, while 50 percent slashed staff numbers. The freeze was associated with an estimated 159,000 adult deaths from HIV in sub-Saharan Africa during that brief period.

    Dr Abdourahmane Diallo, Director of Programme Management at WHO, warned that programmes likely to be affected include HIV, malaria, tuberculosis, neglected tropical diseases, immunisation, and emergency preparedness and response.

    “Losing out on funding will bring major disruptions to the services being provided to countries. It jeopardises progress made to date and can compromise the scaling up of interventions that would be impactful,” Diallo said at a press briefing on Friday.

    The impact cascades beyond health into Kenya’s broader economy. With the original African Growth and Opportunity Act framework having expired in September 2025, Kenyan exporters are operating under a fragile one-year temporary extension. Washington’s exit from the International Trade Centre, a body critical for technical trade assistance, signals diminishing appetite for supporting African exports.

    If preferential trade access lapses later this year, Kenya’s textile and apparel sector will face an existential crisis. Industry analysts warn that reverting to standard tariffs could push costs for Kenyan goods entering the United States up by as much as 20 percent, rendering them uncompetitive against Asian rivals.

    Kenya’s green energy grid and climate adaptation projects face similar jeopardy. The US withdrawal undermines market confidence required for carbon credit instruments that Kenya has banked on to finance major infrastructure. Projects dependent on Green Climate Fund disbursements may now face indefinite delays, pointing to a sharp contraction in government tendering in the coming fiscal year.

    The withdrawal from health-focused multilateral bodies also presents a quieter but potentially massive liability for Kenyan employers. The executive order targets the UN Population Fund, a key driver of maternal health and gender programmes. Coupled with funding freezes to agencies supporting WHO mandates, the move threatens to reverse hard-won public health gains.

    As donor funding recedes, the burden of healthcare financing will inevitably shift to the Kenyan exchequer and the private sector. Business leaders should brace for higher insurance costs and a hit to workforce productivity. A resurgence of communicable diseases or weakening of maternal health support will directly affect labour force availability.

    Despite the WHO having anticipated this possibility following the Covid-19 pandemic, the organisation has been forced to slash 17 percent of its staff and implement dramatic efficiency measures. WHO Director General Dr Tedros Adhanom Ghebreyesus has described the US actions as “sowing chaos,” threatening to roll back decades of progress on infectious and neglected diseases.

    The withdrawal’s timing could not be worse. Eight of 12 WHO health priority areas in Africa were already funded at less than 50 percent earlier this year. Twenty-seven percent of all US funding through WHO for the African region goes to polio eradication, while 20 percent supports improved access to quality essential health services. The balance funds pandemic preparedness and response, capabilities that proved critical during the Covid-19 outbreak.

    Dr Amoth has advised countries, including Kenya, to invest more in primary health care services, prevention, and health promotion, noting that such services are comprehensive, integrated, and promote inclusivity.

    “Investing in PHC yields more dividends compared to investment in curative services,” he said, though critics point out that scaling up primary health care requires exactly the kind of international support that is now evaporating.

    The Ministry of Health is awaiting communication from WHO on which specific programmes will be affected. Once that information arrives, officials promise to put in place necessary mitigation measures to ensure programme continuity. However, with WHO membership dropping from 174 to 173 member states and the remaining countries struggling with their own economic challenges, prospects for covering the funding gap appear dim.

    Health experts warn that early detection of disease threats, a priceless gift in terms of pandemic response, will be severely compromised. As one American epidemiologist put it, responding to a five-acre fire is vastly different from battling a 5,000-acre inferno. Unfortunately, Kenya may now find itself facing the latter scenario when the next disease outbreak strikes.

    The question haunting health officials across Kenya tonight is simple yet devastating. Will the country’s health system survive the withdrawal of its most powerful ally, or will millions of Kenyans pay the ultimate price for decisions made thousands of kilometres away in Washington?

    For now, hospitals continue operating, antiretroviral drugs remain available, and malaria vaccines are still being administered to infants at facilities like Lumumba Sub-County Hospital in Kisumu. But those on the frontlines know that the clock is ticking, and without urgent action, Kenya’s hard-won health gains could vanish like morning mist over Lake Victoria.

    The Ministry of Health has promised to provide updates as the situation develops, but for families relying on donor-funded health services, the wait is agonising. The slow bleed has begun, and only time will tell whether Kenya can stanch the wound before it becomes fatal.

  • State Set to Demolish Pastor Ng’ang’a’s Church in Sh28 Billion Railway City Push

    State Set to Demolish Pastor Ng’ang’a’s Church in Sh28 Billion Railway City Push

    Kenya Railways Corporation has issued a seven-day demolition notice targeting Neno Evangelism Centre, the sprawling church empire of controversial televangelist Pastor James Ng’ang’a, in a dramatic escalation of a land dispute that has simmered for years.

    The state agency’s move to reclaim prime property along Haile Selassie Avenue has set the stage for a showdown with one of Kenya’s most polarizing preachers, whose fiery sermons and run-ins with the law have made him a household name.

    The demolition notice, signed by Kenya Railways Managing Director Philip Mainga, warns that any structures remaining after the deadline will be brought down at the owners’ cost.

    Pastor Ng’ang’a’s church sits on land that Kenya Railways insists forms part of a railway reserve earmarked for the ambitious Sh28 billion Railway City project.

    The development, backed by Sh11.9 billion from the United Kingdom government, aims to transform Nairobi’s central railway station into a modern multimodal transport hub capable of moving 30,000 passengers per peak hour.

    But the preacher is not going down without a fight.

    In 2023, Ng’ang’a obtained a court injunction blocking Kenya Railways from interfering with his property, which he claims to own lawfully.

    Court documents reveal the pastor had drawn up plans to develop a commercial complex with at least 20 shops, parking facilities and other amenities on the contested plot.

    In a scathing court application, Ng’ang’a accused the state agency of attempting to unlawfully dispossess him after he notified them of his development plans.

    The Environment and Land Court granted him temporary protection, with Judge Edward Wabwoto issuing orders restraining Kenya Railways from disturbing the pastor’s quiet enjoyment of the land pending the case’s determination.

    The demolition threat extends beyond Ng’ang’a’s empire.

    Also in the firing line is Jesus Is Alive Ministries, led by former Starehe MP Bishop Margaret Wanjiru, another politically connected televangelist who has accused the government of betrayal.

    Her church compound was partially demolished in 2024 when unknown individuals tore down a perimeter wall, claiming to act on Kenya Railways’ instructions.

    Wanjiru, visibly emotional at the time, lamented that the government she had campaigned for was now targeting her ministry.

    Two years earlier, the Environment and Land Court had dismissed her petition challenging Kenya Railways’ construction of a wall separating church land from railway property, ruling that she had failed to prove encroachment.

    The Railway City project spans 13 acres and promises to revolutionize public transport in the capital.

    Plans include laying 45 kilometers of new railway track, constructing a new central station building, building overbridges across platforms, and establishing a freight marshalling yard at Makadara.

    The development will feature office blocks, shopping malls and a light industrial hub, with completion initially targeted for 2027.

    Two petrol stations and an abandoned construction site are also marked for demolition as Kenya Railways accelerates site clearance for the project.

    The corporation says final designs have been completed and procurement processes are underway, signaling that demolitions could begin imminently.

    For Pastor Ng’ang’a, whose ministry has weathered numerous controversies including a 2015 road accident that left one person dead, the demolition notice represents yet another legal battle.

    Known for his combative style and lavish lifestyle, the preacher has built a religious empire that includes a television station and large congregation.

    The standoff mirrors similar disputes across Nairobi where the government has embarked on aggressive land reclamation drives.

    Recent evictions in Mariguini displaced over 5,000 families to pave way for affordable housing projects, while Kiambu Governor Kimani Wamatangi has cried political persecution after demolitions of Nyayo properties.

    As the seven-day ultimatum ticks down, all eyes are on whether Ng’ang’a’s 2023 court injunction will hold or whether bulldozers will roll into Haile Selassie Avenue.

    Kenya Railways has made clear it intends to take full possession of the land, setting the stage for what could be one of the most dramatic demolitions in recent memory.

    The corporation insists the Railway City project is critical for easing congestion in Nairobi’s central business district and improving connectivity across the metropolitan area.

    But for Ng’ang’a and Wanjiru, the price of progress could be the loss of their religious strongholds in the heart of the capital.

  • Kenya Opens KPC to Public Ownership in Historic NSE e-IPO

    Kenya Opens KPC to Public Ownership in Historic NSE e-IPO

    Nairobi, January 19, 2026 — Kenya has formally opened one of its most strategic state assets to public ownership after the National Treasury on Monday launched the Kenya Pipeline Company (KPC) Initial Public Offering at the Nairobi Securities Exchange, marking the largest IPO in the country’s history and the first to be conducted electronically.

    Under the offer, the Government is selling 65 percent of KPC’s 11.8 billion issued ordinary shares at Sh9 per share, a move that will significantly dilute state ownership in the petroleum transporter and usher the company into the public markets for the first time.

    The offer period runs from January 19 to February 19, with trading of KPC shares expected to begin on March 9, subject to regulatory clearances. The broader privatisation process is slated to conclude by the end of March.

    Treasury Cabinet Secretary John Mbadi said the listing was a cornerstone of the government’s state-owned enterprise reform agenda, aimed at broadening citizen ownership while deepening capital markets.

    “This IPO is about transforming a wholly state-owned enterprise into a people-owned company,” Mbadi said during the launch ceremony in Nairobi, adding that the transaction would strengthen both KPC and the Nairobi Securities Exchange.

    The IPO includes an Employee Share Ownership Plan, with five percent of the offer shares reserved for eligible KPC staff, allowing workers to acquire a direct stake in the company’s future performance.

    Privatisation Authority chairman Faisal Abass described the transaction as a test case for transparent and technology-driven privatisation, noting that the electronic structure was designed to widen access and improve governance.

    KPC becomes the first company to list through an e-IPO at the NSE, coming at a time when the bourse has recorded renewed momentum, with market capitalisation surpassing Sh3 trillion late last year  .

    Proceeds from the sale will go directly to the Exchequer and form part of the government’s financing plan for the 2025/26 financial year. Treasury said the funds will support priority sectors including energy, roads, water and irrigation, airports, and broader fiscal consolidation efforts.

    The offer is open to Kenyan retail and institutional investors, East African Community investors, oil marketing companies, KPC employees, and international investors, in line with capital markets regulations.

    Founded in 1973, KPC operates more than 1,300 kilometres of petroleum pipelines and is central to Kenya’s fuel supply chain and regional energy trade. The company is among the country’s most profitable state corporations, reporting revenues of Sh38.6 billion and net profits of Sh10.37 billion for the year ended June 2025.

    Upon completion of the IPO, KPC will transition from a state corporation to a publicly listed firm on the NSE’s Main Investment Market Segment, fundamentally reshaping ownership of a key national infrastructure asset.

  • Unfit for Office: The Damning Case Against NCA Boss Maurice Akech as Bodies Pile Up

    Unfit for Office: The Damning Case Against NCA Boss Maurice Akech as Bodies Pile Up

    The walls are closing in on National Construction Authority Executive Director Maurice Akech as a damning legal petition lays bare what activists describe as years of catastrophic regulatory failure that has turned Kenya’s construction sector into a killing field.

    Human rights activist Francis Awino has thrown down the gauntlet at the High Court, demanding Akech be declared unfit for office and immediately removed for what the petition describes as gross negligence, incompetence and a systemic failure to enforce construction laws that has cost lives and left thousands of Kenyans living in death traps.

    The explosive court documents paint a devastating picture of an authority asleep at the wheel while developers flouted safety regulations with impunity, buildings rose illegally into the sky, and enforcement notices were treated as mere suggestions rather than legal orders.

    The latest tragedy, the South C building collapse that killed two people, has become the catalyst for what could be Akech’s professional downfall. But it is far from an isolated incident. The petition reveals a chilling pattern of regulatory lapses stretching back years, with deadly consequences that Awino argues were entirely preventable.

    According to court filings, investigations by both Nairobi City County and the NCA itself revealed that the doomed South C building was constructed without approved structural plans, lacked mandatory geotechnical assessment reports, and never underwent required statutory inspections. The developer allegedly exceeded the approved 12 floors by adding extra storeys without authorisation, yet construction continued unchecked.

    Most damning is the timeline of inaction. The petition reveals that Nairobi City County issued enforcement notices to the developer and contractor warning of violations in May, July and December 2025. Three separate warnings. Three opportunities for the NCA to step in and halt construction. Three chances to save lives.

    Yet nothing happened. Construction continued. Workers toiled on the illegal floors. And on January 2, 2026, physics and gravity combined to deliver their inevitable verdict as the building pancaked to the ground, crushing two people to death.

    “The NCA, under the leadership of its CEO, failed to enforce compliance with construction and safety standards despite having the mandate to do so,” the petition states bluntly. Awino argues that Akech had direct authority over compliance but failed to enforce regulations, halt construction or sanction developers, describing his inaction as administrative maladministration and abuse of office.

    When asked by journalists why the NCA failed to stop construction at the South C site despite the obvious non-compliance, Akech declined to explain, instead directing reporters to a statement issued by Public Service Cabinet Secretary Geoffrey Ruku. The deflection speaks volumes.

    Even more troubling is what Awino describes as Akech’s public admission after the collapse that the building was non-compliant at the time it fell. In other words, the regulator knew the building was illegal, knew it was dangerous, yet did nothing to protect the public until it was too late.

    But South C is merely the latest chapter in what the petition describes as a broader pattern of regulatory failure under Akech’s watch. The activist points to previous building collapses in Zimmerman in September 2023 and Kahawa West in October 2024, each attributed to poor workmanship, substandard materials and weak oversight.

    In Kahawa West, the multi-agency team had condemned the eight-storey building on Wednesday, October 16, 2024, and issued an evacuation order. By Sunday, October 20, the building had collapsed. While tenants were evacuated in time, preventing mass casualties, residents revealed that instead of demolishing the structure, the developer had been allowed to attempt repairs to visible cracks, essentially papering over a structural catastrophe waiting to happen.

    The statistics are horrifying. Kenya has recorded 87 building collapses over the past five years, with an estimated 200 people losing their lives and over 1,000 injured, according to NCA’s own reports. The 2018 audit by the National Building Inspectorate found that of 14,925 buildings examined, only 2,194 were safe. That means 723 buildings were classified as very dangerous, while 10,791 were deemed unsafe.

    A subsequent 2021 NCA audit revealed that 35 per cent of buildings in Kenya are at risk of failure. These are not hidden problems. These are known dangers, documented in official reports, sitting in government files while Akech has led the authority tasked with preventing exactly these disasters.

    The timeline of Akech’s tenure raises uncomfortable questions. Appointed as Executive Director on September 27, 2019, for a four-year term, Akech came to the role with impressive credentials: a master’s degree in Construction Engineering and Management and a bachelor’s degree in Civil Engineering, both from Jomo Kenyatta University of Agriculture and Technology. He is registered as a civil engineer by the Engineers Board of Kenya and holds over 20 years of experience in design, construction supervision and management.

    Yet despite this pedigree, the building collapses have continued. In fact, data shows that after a promising decline from 21 collapses in 2015 to just two in 2019, the numbers began rising again under Akech’s watch, with three buildings collapsing in a single week in Nairobi in November 2022.

    Professional bodies have been scathing in their assessment of the regulatory environment. Institution of Engineers of Kenya President Shammah Kiteme’s question cuts to the heart of the accountability crisis: “Who was the responsible structural engineer? Is it the one in the NCA records? The one on site?”

    The Architects Alliance President Senator Sylvia Kasanga has demanded that the NCA blacklist all contractors with compliance issues and make the list public. “Can NCA blacklist all contractors who have issues? Make it public,” she stated, highlighting what she sees as a culture of impunity enabled by weak enforcement.

    Architectural Association of Kenya President Prof George Ndege warned that many buildings would collapse if even a minor tremor struck Nairobi, describing the built environment as living on borrowed time. “We are living by the grace of God,” he said, a damning indictment of the regulatory regime under Akech’s leadership.

    The petition seeks a court declaration that Akech is unfit to hold office, along with orders for his removal or suspension. But Awino is not stopping there. He also demands immediate halts to all non-compliant construction projects in Nairobi, full accountability for enforcement lapses between 2021 and 2026, and mandatory inspections and sanctions for violators.

    The activist contends that Akech’s actions, or more accurately his inaction, violated constitutional rights to life, fair administrative action and access to safety information, while also breaching the National Construction Authority Act, the Physical and Land Use Planning Act, and county building laws.

    The State Department of Public Works and Infrastructure and the NCA itself are listed as interested parties in the case, which has been filed before Justice Lawrence Mugambi.

    Perhaps most troubling is the culture of impunity that appears to have taken root under Akech’s tenure. Despite the establishment of the NCA in 2011 specifically to control the construction sector and prevent such disasters, professional bodies say there is no evidence that lessons have been learned from previous investigations.

    “Many investigations have been done. There is no evidence that we have implemented the lessons learnt from the dissections and investigations. The failure to make people take responsibility makes this culture of impunity entrenched and there is no way to stop it,” the professional lobbies warned.

    The South C building itself exemplifies this culture. The NCA issued registration for the project on November 8, 2023, before mandatory approvals from county government and the National Environment Management Authority were secured. Additional floors were approved without proof of structural review or inspection of ongoing works. The developer was listed as the engineer, creating obvious conflicts of interest. And perhaps most damningly, construction continued despite enforcement notices and stop orders from both the NCA and county government.

    All of this happened on Akech’s watch. All of this occurred while he held the authority’s highest office, with direct responsibility for compliance and enforcement.

    When Cabinet Secretary Alice Wahome promised that those responsible for the South C collapse would be held accountable and would “carry the burden of punishment,” she may not have anticipated that the net would widen to include the very regulator tasked with preventing such disasters.

    “A building that is professionally designed and constructed using the right materials should not collapse and kill people. Those responsible will carry the burden of punishment, and we will crack down on rogue developers, contractors and quacks,” Wahome declared.

    But what about rogue regulators? What about enforcement officials who watch violations multiply and do nothing? What about authority directors who preside over a system where 85 per cent of buildings in the capital city are unsafe for human habitation?

    The petition argues these are not mere administrative lapses but fundamental breaches of the public trust that demand the ultimate professional sanction: removal from office.

    As the case proceeds through the courts, Akech’s defenders may point to the complexity of the construction sector, the multiple actors involved, the political interference, the corruption that oils the wheels of illegal development. All true. All documented. All damning in their own right.

    But Francis Awino’s petition poses a simpler question: If the head of the National Construction Authority cannot or will not enforce construction laws, halt illegal developments, or protect Kenyans from buildings that kill, then what exactly is he there for?

    Two bodies pulled from the rubble in South C deserve an answer. So do the 200 people who have died in building collapses over the past five years. So do the millions of Kenyans who go to bed each night in structures that professional engineers warn could become their tombs at any moment.

    The question before Justice Mugambi is stark: Has Maurice Akech failed in his duty to protect Kenyan lives, and if so, should he pay the price with his job?

    As the evidence mounts, the answer appears increasingly clear. And increasingly damning.

  • EXPLOSIVE: BBS Mall Owner Wants Gachagua Reprimanded After Linking Him To Money Laundering, Minnesota Fraud

    EXPLOSIVE: BBS Mall Owner Wants Gachagua Reprimanded After Linking Him To Money Laundering, Minnesota Fraud

    The gloves are off in what has rapidly escalated into one of Kenya’s most explosive political and business controversies this year, as the owner of Nairobi’s iconic Business Bay Square Mall has launched a blistering legal assault against former Deputy President Rigathi Gachagua over remarks linking the multibillion-shilling commercial empire to an international money laundering scandal.

    In a hard-hitting petition filed with the National Cohesion and Integration Commission on January 5, lawyers representing the BBS Mall proprietors have accused Gachagua of making reckless, inflammatory and ethnically charged statements that threaten to tear apart the social fabric of Kenya’s most vibrant commercial hub and destroy the livelihoods of thousands of innocent traders.

    The political firestorm erupted after Gachagua, speaking during a Sunday church service at AIPCA Kiratina in Githunguri on January 4, made sensational claims connecting Eastleigh’s sprawling shopping center to proceeds from a massive fraud scheme in Minnesota, United States, where funds meant for people living with disabilities were allegedly siphoned into Kenya.

    “That money was meant to help people living with disabilities. It was stolen, brought to Kenya and invested in land, houses, and the construction of a mall,” Gachagua thundered from the pulpit, before dropping a political bombshell. “There is a mall in Eastleigh that was built using that money, and the owner is a business partner of the President.”

    But Gachagua did not stop there. In remarks that have sent shockwaves through Kenya’s business community and diplomatic circles, the Democracy for Citizens Party leader urged US President Donald Trump to bypass Kenya’s legal system entirely and conduct a Venezuela-style military operation to seize suspects linked to the alleged fraud.

    “We are asking you Trump, don’t bother about the extradition process in Kenya, wewe fanya vile ulifanya Venezuela, because Ruto amesema jamaa asitolewe huku,” Gachagua said in Swahili, referencing the dramatic capture of Venezuelan President Nicolas Maduro by US forces just days earlier.

    The response from BBS Mall’s legal team, led by MMA Advocates, has been swift and uncompromising. In their meticulously crafted 10-page petition, the lawyers argue that Gachagua’s statements go far beyond legitimate political critique and cross into dangerous territory that could ignite ethnic tensions, destroy businesses and undermine national cohesion.

    “These utterances have the effect of demonising an entire community and economic zone without factual or legal basis,” the petition states, adding that the former deputy president’s words amount to “collective punishment and ethnic stereotyping, which this country has suffered from in the past.”

    The lawyers have painted a damning picture of the potential fallout from Gachagua’s remarks. Investors are getting cold feet. Tenants are reconsidering expansion plans. Customers are staying away. The reputation of one of East Africa’s largest shopping complexes hangs in the balance, they argue, all because of unsubstantiated allegations from a high-ranking political figure.

    Rigathi Gachagua.
    Rigathi Gachagua.

    “Our tenants are registered taxpayers, compliant with Kenyan law, and contribute significantly to the national economy,” the petition notes. “Yet they are now being unfairly targeted in political rhetoric that threatens their safety, dignity and livelihoods.”

    The timing could not be more explosive. Gachagua’s remarks came just as US federal authorities intensified their crackdown on alleged fraud in Minnesota’s social services programs, with the FBI and Department of Homeland Security conducting sweeping investigations that have ensnared dozens of suspects, most of Somali descent.

    The Minnesota scandal itself is staggering in its scope. Federal prosecutors have charged 92 people, with 62 already convicted, in connection with what FBI Director Kash Patel has called “just the tip of a very large iceberg.” The schemes have targeted everything from pandemic-era child nutrition programs to disability housing services, with losses potentially running into the billions.

    The most notorious case involved Feeding Our Future, a nonprofit that allegedly bilked taxpayers out of USD 250 million by submitting fake meal counts and invoices during the COVID-19 pandemic. Now, the Trump administration has frozen child care funding to Minnesota and four other states, demanding comprehensive audits and threatening to cut off billions in federal support.

    Against this backdrop, Gachagua’s decision to link Kenya’s commercial sector to the Minnesota mess has triggered a political earthquake. Eldas Member of Parliament Adan Keynan rushed to the defense of the BBS Mall, accusing Gachagua of making “false and malicious claims” that are “chronologically impossible.”

    Keynan revealed explosive details about the mall’s legitimate history, noting that the property was lawfully acquired in 2009 and initially housed Comesa Mall before being redeveloped between 2018 and 2022 into what is now described as the largest shopping complex in East and Central Africa.

    “The property was later redeveloped into what is now the largest mall in East and Central Africa. Construction commenced in 2018 and was successfully completed in 2022,” Keynan said, adding pointedly that the alleged Minnesota fraud occurred between 2022 and 2025, making it impossible for those funds to have financed a building already completed.

    The lawmaker described the mall’s proprietor as a respected businessman who has operated in Eastleigh for more than 25 years without ever being linked to criminal activity, demanding that Gachagua retract his claims and issue an unreserved public apology.

    But Gachagua has shown no signs of backing down. In the same church address, he unleashed a blistering attack on President William Ruto, accusing him of shielding alleged drug barons in his Cabinet and protecting individuals linked to the Minnesota fraud.

    “Nimeona jana ukisema mambo ya wale wanauza cocaine na heroin, ati utadeal nao, kwanza futa wale mawaziri uko nao wawili wanajulikana kwa kuuza madawa,” Gachagua said, daring the President to begin his anti-narcotics crackdown within his own government.

    Trade Cabinet Secretary Lee Kinyanjui has hit back hard, accusing Gachagua of recklessness and warning that dragging foreign governments into Kenya’s internal disputes could have catastrophic consequences. “How can a leader seek to throw his own country into the deep end merely to score personal revenge?” Kinyanjui demanded.

    The BBS Mall petition lays out stark demands. It calls on the NCIC to investigate whether Gachagua’s remarks constitute hate speech or ethnic contempt under Kenyan law, issue formal censure if violations are found, and recommend prosecution where appropriate. The lawyers also want media houses cautioned against amplifying such inflammatory statements.

    “The effect of these remarks is real, not hypothetical,” the petition warns. “They threaten the reputation and operations of lawful businesses, destabilize commercial relations, and can inflame ethnic animosity.”

    For the thriving business community in Eastleigh, a commercial powerhouse that employs thousands and contributes hundreds of millions in tax revenue annually, the stakes could not be higher. The petition argues that branding an entire district as a criminal enclave risks fueling harassment, resentment and hostility against law-abiding residents.

    “It is dangerous for a leader of Mr Gachagua’s stature to repeatedly suggest that businesses in Eastleigh are inherently criminal,” the document states. “Such statements amount to collective punishment and ethnic stereotyping, which this country has suffered from in the past.”

    As the NCIC weighs its response, Kenya finds itself at a crossroads. Will it allow inflammatory political rhetoric to destroy legitimate businesses and communities? Or will it draw a line in the sand and enforce laws designed to protect national cohesion?

    The petition concludes with a powerful appeal that resonates beyond the immediate controversy. “Kenya’s diversity is a strength, not a weakness. Leaders must choose words that unite rather than divide.”

    As of press time, the NCIC had not publicly responded to the explosive complaint, leaving the nation to wonder whether Kenya’s foremost cohesion watchdog will bark or bite when confronted with one of its most significant tests in recent memory.

    What is clear is that this battle is far from over. With political tensions running high, business reputations on the line and international fraud investigations casting long shadows, the Gachagua-BBS Mall saga threatens to dominate headlines for weeks to come.

    The question now is whether Kenya’s institutions are strong enough to referee this explosive clash between political ambition and commercial legitimacy, or whether the country will once again allow ethnic profiling and inflammatory rhetoric to poison its social and economic fabric.

  • Wanda Wanjiru Okisai in court over illegal posession of firearm Certificate

    Wanda Wanjiru Okisai in court over illegal posession of firearm Certificate

    Businesswoman Wanda Wanjiru Okisai has been charged in court for allegedly being in possession of ammunition without a valid firearm certificate, contrary to Kenya’s Firearms Act.

    Wanda Wanjiru Okisai was arrested at Hazina Trade Centre in Nairobi after police allegedly found her with one round of 9x19mm ammunition.

    The prosecution claims the ammunition was unlawfully obtained.

    According to court documents, Wanda was apprehended on October 30, 2025, and was unable to account for how she came into possession of the ammunition.

    She was later arraigned in court, where she denied the charges.

    Her defence lawyer pleaded with the court to grant her lenient bond terms, arguing that the ammunition had not been used to commit any offence.

    The court, however, directed that Wanda be detained in police custody until November 18, 2025, to allow the probation department to file a report on her suitability for release on bond pending trial.

  • Hass Petroleum Empire Faces Collapse as Court Greenlights KSh 1.2 Billion Property Auction

    Hass Petroleum Empire Faces Collapse as Court Greenlights KSh 1.2 Billion Property Auction

    The sprawling business empire of prominent Kenyan businessman Abdinasir Ali Hassan, chairman of Hass Petroleum Group Limited, is teetering on the brink of financial ruin after the Court of Appeal delivered a crushing blow to his desperate attempts to save a prime Nairobi property from the auctioneer’s hammer.

    In a devastating ruling that has sent shockwaves through Kenya’s business community, a three-judge appellate bench comprising Justices Wanjiru Karanja, Mumbi Ngugi, and Aggrey Muchelule dismissed Hassan’s eleventh-hour petition with costs, paving the way for Credit Bank Limited to proceed with the auction of a prized Upper Hill property valued at a staggering KSh 1.2 billion.

    The court’s decision marks a spectacular fall for the petroleum magnate, whose business interests now hang in the balance as creditors close in on valuable assets that once symbolized his commercial success.

    Court documents reveal a complex web of corporate debt that began unraveling in September 2020 when One Upperhill Towers Limited pledged the suit property as collateral to Credit Bank Limited. The security was intended to guarantee enormous financial facilities totaling KSh 1.2 billion that had been advanced to two associated companies, Jabavu Village Limited and Hasson Pharmaceuticals Limited.

    The deal appeared straightforward until cracks began to emerge. By January 30, 2025, One Upperhill Towers Limited was racing to the High Court in a frantic bid to stop Credit Bank Limited from auctioning the property through Purple Royal Auctioneers and Garam Investments Auctioneers.

    In court papers filed with evident urgency, Hassan’s camp painted a picture of corporate persecution, claiming the loan had been serviced regularly and that the bank’s auction plans were nothing short of malicious, unprocedural and unlawful. They accused Credit Bank of brazenly flouting mandatory provisions enshrined in Sections 89, 90, and 96 of the Land Act, insisting their legal right to redeem the property had been trampled upon.

    But the Court of Appeal was having none of it. In a ruling that legal experts describe as unambiguous and final, the three judges tore through the arguments presented by Hassan’s legal team, finding them fundamentally lacking in merit.

    The court held that evidence of default was crystal clear and indisputable. In language that left no room for misinterpretation, the judges explained that once a charged property is used to secure a loan and the borrower fails to meet their obligations, the property automatically transforms into a commodity available for sale. The default, they determined, triggered the bank’s legitimate right to recover its funds through auction.

    The decision represents more than just a legal defeat for Hassan. It exposes the precarious financial position of businesses operating under the Hass Petroleum umbrella and raises uncomfortable questions about the group’s ability to service massive debts accumulated during what now appears to have been an aggressive expansion phase.

    Upper Hill, where the doomed property sits, ranks among Nairobi’s most sought-after commercial districts. The area has transformed dramatically over the past decade into a gleaming corridor of glass towers, international hotels, and corporate headquarters. A KSh 1.2 billion property in this prime location represents not just significant value but a strategic asset that any business would fight tooth and nail to retain.

    The fact that Hassan has lost this legal battle suggests the financial pressures facing his group may be far more severe than previously understood. Business analysts watching the case have begun speculating about what other assets might be at risk and whether this auction represents an isolated incident or the beginning of a broader unraveling.

    Credit Bank Limited, for its part, has maintained a studied silence throughout the legal proceedings, allowing its lawyers to do the talking in court. The bank’s position has been consistent and unyielding. The money was lent, the property was pledged, payments were not made as required, and therefore the auction must proceed. The Court of Appeal has now validated that position entirely.

    For Purple Royal Auctioneers and Garam Investments Auctioneers, the firms tasked with conducting the sale, the court’s green light means they can now move forward with what promises to be one of the most significant property auctions in recent Kenyan commercial history. Industry insiders expect intense bidding from deep-pocketed investors eager to snap up prime real estate at what they hope will be below-market prices.

    The wider implications of this case extend beyond Hassan’s personal business interests. The Hass Petroleum Group has been a visible player in Kenya’s energy sector for years, operating fuel stations across the country and positioning itself as a homegrown competitor to multinational oil companies. The group’s potential financial distress raises questions about stability in the sector and the sustainability of aggressive business models built on substantial leverage.

    Legal experts note that the Court of Appeal’s dismissal with costs adds insult to injury for Hassan. Not only has he lost the substantive case, but he must now pay the legal expenses incurred by Credit Bank Limited in defending against his appeal. These costs, while likely modest compared to the KSh 1.2 billion at stake, underscore the totality of his defeat.

    As the dust settles on this bruising court battle, attention now turns to whether Hassan and his associated companies will attempt any further legal maneuvers to delay the inevitable or whether they will finally accept defeat and allow the auction to proceed. Legal observers suggest that further appeals at this stage would be futile given the comprehensive nature of the Court of Appeal’s dismissal.

    The case serves as a stark reminder of the risks inherent in using valuable property as collateral for business loans. While such arrangements can fuel expansion and growth during good times, they can quickly become existential threats when cash flows tighten and loan obligations cannot be met.

    For Credit Bank Limited, the ruling represents vindication of its rights as a lender and sends a clear message to other borrowers about the consequences of default. The bank can now proceed to recover its funds through the auction process, although whether the property will fetch its full KSh 1.2 billion valuation in a competitive sale remains to be seen.

    As the gavel prepares to fall on this prime Upper Hill property, Abdinasir Ali Hassan must confront an uncomfortable new reality. The business empire he built is facing its gravest challenge, and the courts have made clear they will not intervene to save him from the consequences of financial decisions made years ago.

  • Court Gives Credit Bank Green Light to Sell Prime Nairobi Plot Over Sh1.2bn Debt

    Court Gives Credit Bank Green Light to Sell Prime Nairobi Plot Over Sh1.2bn Debt

    Credit Bank has secured approval to auction a prime parcel of land in Nairobi’s Upper Hill after the Court of Appeal rejected a bid by the property owner to halt the sale in a long-running dispute over a multibillion-shilling debt.

    The appellate judges dismissed an application by One Upper Hill Towers Ltd, clearing the lender to proceed with selling the land that once hosted the foundation for a proposed skyscraper touted as Africa’s tallest building.

    The court found that the company and its affiliates had fallen into deep loan default and offered no evidence that the outstanding amounts were being serviced. 

    The dispute centres on loans totalling Sh1.2 billion advanced to two sister firms, Jabavu Village Ltd and Hasson Pharmaceuticals Ltd, which were secured using the Upper Hill property.

    Court filings showed the debt had ballooned to more than Sh2 billion by the time the matter reached the High Court, with dollar-denominated facilities continuing to accrue interest. 

    One Upper Hill Towers Ltd insisted that it had been regularly servicing the facilities and accused the bank of acting maliciously by initiating the forced sale without following legal procedures under the Land Act.

    The firm argued its right to redeem the land was being violated and sought to suspend the auction.

    But Credit Bank told the court it had issued all mandatory notices after persistent default.

    It said a 90-day statutory notice was sent in September 2022, followed by a 40-day notice under Section 96 of the Land Act, valuation of the property and a notification of sale.

    When the arrears were not cleared, the bank moved to recover the debt through auction. 

    The Court of Appeal agreed with the lender, noting that an injunction is an equitable remedy granted only where circumstances justify it.

    The judges said the evidence clearly showed the borrower was in default and that once a charged property is used as security, it becomes a commodity for sale if repayment terms are breached.

    The bench also held that if it is later found that any notices were irregular, the property’s value can be compensated, adding that the bank’s right to realise its security was already established.

    It concluded that the application lacked merit and dismissed it with costs. 

    The ruling ends months of legal battles that had frozen Credit Bank’s efforts to recover the debt through the high-value plot located in one of Nairobi’s most sought-after commercial districts.

    The decision now paves the way for the lender to proceed with the auction, marking another high-profile property sale tied to rising loan defaults across Kenya’s real estate sector.